PINNACLE OF SUCCESS - Adamjee Insurance€¦ · Mobilink Microfinance Bank Limited National Bank...
Transcript of PINNACLE OF SUCCESS - Adamjee Insurance€¦ · Mobilink Microfinance Bank Limited National Bank...
PINNACLE OF SUCCESSAt Adamjee Insurance our aspirations reflect the commitment,passion and resilience that goes into our performance for ourcustomers. With our teamwork nothing is unreachable, nomatter what the route ahead for us, we are ready to movemountains. It is the mountain that inspires us to go further,for each climb takes us closer to success.
THE PATHWAYTO SUCCESS
CONTENTS
04
06
08
10
Vision / Core Values
Company Information
Directors’ Review to the members onUnconsolidated Condensed Interim FinancialInformation
Directors’ Review to the members on
78 Auditor's Review Report
12 Auditor's Review Report
Unconsolidated Condensed Interim FinancialInformation (Urdu)
45
48
15 Unconsolidated Condensed Interim FinancialInformation
Directors’ Review on Consolidated CondensedInterim Financial Information
Consolidated Condensed Interim FinancialInformation
79 Condensed Interim FinancialInformation - Window Takaful Operations
VISIONOur will is to explore, innovate and differentiate.
Our passion is to provide leadership to insurance industry.
CORE VALUES• Integrity• Humility• Fun at the Workplace• Corporate Social
Responsibility
BOARD OF DIRECTORSUmer Mansha ChairmanIbrahim Shamsi DirectorImran Maqbool DirectorMuhammad Anees DirectorMuhammad Arif Hameed DirectorSadia Younas Mansha DirectorShaikh Muhammad Jawed DirectorMuhammad Ali Zeb Managing Director & CEO
ADVISORMian Muhammad Mansha
AUDIT COMMITTEEMuhammad Anees ChairmanIbrahim Shamsi MemberShaikh Muhammad Jawed MemberUmer Mansha Member
ETHICS, HUMAN RESOURCE AND REMUNERATION COMMITTEEMuhammad Anees ChairmanIbrahim Shamsi MemberMuhammad Ali Zeb MemberUmer Mansha Member
INVESTMENT COMMITTEEUmer Mansha ChairmanImran Maqbool MemberMuhammad Ali Zeb MemberMuhammad Asim Nagi Member
COMPANY SECRETARY Tameez ul HaqueF.C.A
CHIEF FINANCIAL OFFICERMuhammad Asim NagiA.C.A
COMPANY INFORMATION
6 FIRST QUARTER REPORT
7ADAMJEE INSURANCE
EXECUTIVE MANAGEMNT TEAM Muhammad Ali Zeb Muhammad Asim Nagi Adnan Ahmad Chaudhry Asif Jabbar Muhammad Salim Iqbal AUDITORS Deloitte Yousuf Adil Chartered Accountants 134-A, Abu Bakar Block New Garden Town Lahore, Pakistan SHARIAH ADVISOR Musti Muhammad Hassan Kaleem
SHARE REGISTRAR CDC Share Registrar Services LimitedCDC House, 99-B, Block-B, S.M.C.H.S.,Main Shahra-e-Faisal, Karachi-74400Tel: (92) 0800-23275Fax: (92-21) 34326053
BANKERSAskari Bank LimitedBank Alfalah LimitedAbu Dhabi Commercial BankAllied Bank LimitedBank Al-Habib LimitedBank Islami Pakistan Limited Dubai Islamic Bank Pakistan LimitedEmirates Islamic BankFINCA Microfinance Bank LimitedHabib Bank LimitedHabib Metropolitan BankKhushali Bank LimitedMCB Bank LimitedMCB Islamic Bank LimitedMeezan Bank LimitedMobilink Microfinance Bank LimitedNational Bank of PakistanSamba Bank LimitedSoneri Bank LimitedThe Punjab Provincial Cooperative Bank LimitedUnited Bank LimitedZarai Taraqiati Bank Limited
REGISTERED OFFICE4th Floor, 27-C-III, Tanveer Building, M.M. Alam Road, Gulberg-III, Lahore- 54000, PakistanPhone: (92-42) 35772960-79Fax (92-42) 35772868 Email: [email protected]: www.adamjeeinsurance.com
8 SIX MONTHS REPORT
Directors’ Review to the Members on UnconsolidatedCondensed Interim Financial Information (Un-audited)For the Half year Ended 30 June 2019
On behalf of the Board, we are pleased to present the unaudited unconsolidated condensed interim financial information of the Company for the half year ended 30 June 2019.
Financial Highlights:
The highlights for the period under review are as follows:
Earnings per share - Basic and diluted 1.33 3.00
30 June 2019
Rupees in thousand
(Unaudited)
30 June 2018
(Unaudited)
30 June 2019
Rupees
(Unaudited)
30 June 2018
(Unaudited)
Performance Review:
Gross Premium of the Company increased by 26% and Net Premium increased by 21% over the same period of 2018. There was a drop in profitability of 19% in underwriting results over the last period. Investment income also decreased by 65% in the first half of 2019 as compared to the corresponding figures in the last period due to the continuing underperformance by the stock market. Consequently, profit before tax and profit after tax decreased by 48 % and 56 % respectively.
Window Takaful Operations:
Written contribution and Surplus of Participants’ Takaful Fund amounted to Rs. 636,726 thousands (2018: Rs. 546,281 thousands) and Rs. 71,595 (2018: Rs. 10,664 thousands), respectively. Most of the growth in contribution written came from the Motor and Health line of businesses which contributed 62% and 16%, respectively to the total contribution written in first half of 2019. Window Takaful Operations’ profit before tax increased by 31% amounting to Rs. 57,859 thousands for the half year ended 30 June 2019 (2018: Rs. 44,281 thousands).
Future Outlook:
Insurance Industry in Pakistan has seen several pinnacle and downfalls in the recent years. Still, the market performance indicators exhibit that insurance industry has kept pace with the economic development of the country and excelling performance of other sectors.
So far 2019 has been a year of consolidation for economy in the country in general and that of Adamjee Insurance in particular where Government of Pakistan took durable steps like rupee devaluation, tax reforms and measures to reduce current account deficit. We shall continue our efforts in delivering financial performance while meeting valuable expectations of our customers.
China Pakistan Economic Corridor (CPEC) will continue to propel growth in insurance business especially during the operational phase of its projects.
Gross Premium 12,129,819 9,648,166
Net Premium 7,702,132 6,380,752
Underwriting results 473,457 584,775
Investment Income 381,552 1,078,520
Profit before tax 887,466 1,692,013
Profit after tax 465,963 1,050,321
9ADAMJEE INSURANCE
For and On Behalf of Board of Directors
Lahore: 23 August 2019 Managing Director &
Muhammad Ali Zeb
Chief Executive Officer
Window Takaful Operations are expected to continue capturing promising growth in the second half of CY19 as well. The demand for Shariah compliant products has widely increased in most lines of business, especially, in Motor and Health and is foreseen to increase at robust rates in the upcoming periods.
It is strongly anticipated that Adamjee Insurance is well poised for a perpetual and strong growth to building long-term shareholder value. We shall continue to invest in digital transformation of technology infrastructure, raising skills of human capital and strengthening our compliance and controls environment.
Acknowledgements:
We thank our shareholders, valued customers, employees and development staff for their consistent support during this period for Adamjee Insurance to maintain its position as one of the Pakistan’s leading insurance companies. We are also grateful to the Securities and Exchange Commission of Pakistan and the State bank of Pakistan for their continued guidance and assistance.
Directors’ Review to the Members on UnconsolidatedCondensed Interim Financial Information (Un-audited)For the Half year Ended 30 June 2019
Shaikh Muhammad Jawed
Director
10 SIX MONTHS REPORT
11ADAMJEE INSURANCE
12 SIX MONTHS REPORT
Introduction
We have reviewed the accompanying unconsolidated condensed interim statement of financial position of Adamjee Insurance Company Limited (the Company) as at June 30, 2019, and the related unconsolidated condensed interim profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, and condensed interim cash flow statement and notes to the condensed interim financial information for the six months period then ended (here-in-after referred to as the “condensed interim financial information"). Management is responsible for the preparation and presentation of these condensed interim financial information in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial information based on our review. The figures of the condensed interim profit or loss and the condensed interim statement of comprehensive income for the three months period ended June 30, 2019 and related comparative information have not been reviewed, as we are required to review only the cumulative figures for the six months period ended June 30, 2019.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of unconsolidated condensed interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying unconsolidated condensed interim financial information as at June 30, 2019 and for the six months period then ended, are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.
Other Matter
The annual financial statements of the Company for the year ended December 31, 2018 were audited by another firm of Chartered Accountants who vide their report dated April 3, 2019 expressed a modified opinion thereon.
The engagement partner on the review resulting in this independent auditor’s review report is Rana M. Usman Khan.
Chartered Accountants
Lahore
Date: 23 August 2019
INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF ADAMJEE INSURANCE COMPANY LIMITED (“THE COMPANY”)REPORT ON REVIEW OF UNCONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION
13ADAMJEE INSURANCE
14 SIX MONTHS REPORT
UNCONSOLIDATEDCondensed Interim
Financial Informationfor the Six Months Ended
30 June 2019(Unaudited)
15ADAMJEE INSURANCE
Unconsolidated Condensed Interim Statement of Financial PositionAs at 30 June 2019
(Unaudited) (Audited)
30 June 2019Note
Rupees in thousand
31 December 2018
ASSETSProperty and equipment 8 3,514,313Intangible assets 9 79,185Investment in subsidiary 10 694,895Investments
Equity securities 11 18,685,087Debt securities 12 378,029Term deposits 13 4,356,113
Loans and other receivables 14 275,875Insurance / reinsurance receivables 15 7,033,977Reinsurance recoveries against outstanding claims 6,046,905Salvage recoveries accrued 350,340Deferred commission expense / acquisition cost 788,431Prepayments 16 3,048,306Cash and bank 17 2,211,444
47,462,900Total assets of Window Takaful Operations - Operator's Fund 18 382,194TOTAL ASSETS 47,845,094
EQUITY AND LIABILITIESCapital and reserves attributable to the Company's equity holders
Ordinary share capital 3,500,000Reserves 19 3,784,200Unappropriated profit 12,379,158Total Equity 19,663,358
LiabilitiesUnderwriting provisions
Outstanding claims including IBNR 10,461,975Unearned premium reserves 10,100,901Unearned reinsurance commission 221,371
Retirement benefit obligations 198,981Deferred taxation 944,446Premium received in advance 407,988Insurance / reinsurance payables 2,709,714Other creditors and accruals 20 2,205,732Lease liability -Deposits and other payables 692,086Taxation - provision less payments 8,723
27,951,917
Total liabilities of Window Takaful Operations - Operator's Fund 18 229,819TOTAL EQUITY AND LIABILITIES
4,103,95474,850
694,895
17,307,736381,663
5,910,048327,251
8,163,8285,897,373
329,7811,075,2823,755,1061,506,325
49,528,092399,838
49,927,930
3,500,0003,063,291
12,320,12118,883,412
10,669,87511,566,014
237,103222,303595,930368,665
3,771,0202,346,272
134,219672,093254,617
30,838,111
206,40749,927,930 47,845,094
Contingencies and commitments 21
The annexed notes from 1 to 35 form an integral part of this unconsolidated condensed interim financial information.
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
Unconsolidated Condensed Interim Profit and Loss Account (Unaudited)For six months period ended 30 June 2019
Net insurance premium 22
Net insurance claims 23
Net commission and other acquisition costs 24
Insurance claims and acquisition expenses
Management expenses 25
Underwriting results
Investment income 26
Rental income
Other income 27
Other expenses 28
Results of operating activities
Finance cost
Profit from Window Takaful Operations
- Operator's Fund 18
Profit before tax
Income tax expense
Profit aster tax for the period
Earnings (aster tax) per share - Rupees 29
3,946,935
(2,457,094)
(412,278)
(2,869,372)
(902,275)
175,288
(107,374)
844
(6,937)
(22,105)
39,716
(2,163)
31,425
68,978
(191,361)
(122,383)
(0.35)
3,233,557
(2,020,307)
(323,494)
(2,343,801)
(698,489)
191,267
531,933
2,515
25,909
(34,996)
716,628
-
24,471
741,099
(354,177)
386,922
1.11
7,702,132
(4,734,885)
(781,831)
(5,516,716)
(1,711,959)
473,457
381,522
1,689
30,444
(52,847)
834,265
(4,658)
57,859
887,466
(421,503)
465,963
1.33
6,380,752
(3,831,484)
(602,641)
(4,434,125)
(1,361,852)
584,775
1,078,520
5,030
46,516
(67,109)
1,647,732
-
44,281
1,692,013
(641,692)
1,050,321
3.00
The annexed notes from 1 to 35 form an integral part of this unconsolidated condensed interim financial information.
30 June 2019 30 June 2018 30 June 2019 30 June 2018
For three months period ended For six months period ended
Rupees in thousand
Note
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
16 SIX MONTHS REPORT
17ADAMJEE INSURANCE
Unconsolidated Condensed Interim Profit and Loss Account (Unaudited)For six months period ended 30 June 2019
Business Underwritten Inside Pakistan
30 June 2019 30 June 2018 30 June 2019 30 June 2018
For three months period ended For six months period ended
Rupees in thousand
Note
Net insurance premium
Net insurance claims
Net commission and other acquisition costs
Insurance claims and acquisition expenses
Management expenses
Underwriting results
Investment income
Rental income
Other income
Other expenses
Results of operating activities
Finance cost
Profit from Window Takaful Operations
- Operator's Fund
22
23
24
26
18
Profit before tax
1,747,879
(970,596)
(101,028)
(1,071,624)
(508,235)
168,020
(164,838)
844
(1,947)
(19,542)
(17,463)
(1,006)
31,425
12,956
1,751,181
(899,469)
(147,073)
(1,046,542)
(503,370)
201,269
513,600
2,515
19,031
(33,106)
703,309
-
24,471
727,780
3,541,069
(1,904,740)
(214,841)
(2,119,581)
(1,043,036)
378,452
278,936
1,689
25,092
(47,338)
636,831
(2,327)
57,859
692,363
3,508,781
(1,763,415)
(244,868)
(2,008,283)
(986,224)
514,274
1,048,461
5,030
32,838
(62,456)
1,538,147
-
44,281
1,582,428
The annexed notes from 1 to 35 form an integral part of this unconsolidated condensed interim financial information.
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
18 SIX MONTHS REPORT
Unconsolidated Condensed Interim Profit and Loss Account (Unaudited)For six months period ended 30 June 2019
Business Underwritten Outside Pakistan
30 June 2019 30 June 2018 30 June 2019 30 June 2018
For three months period ended For six months period ended
Rupees in thousand
Note
Net insurance premium 22
Net insurance claims 23
Net commission and other acquisition costs 24
Insurance claims and acquisition expenses
Management expenses
Underwriting results
Investment income 26
Rental income
Other income
Other expenses
Results of operating activities
Finance cost
Profit before tax
2,199,056
(1,486,498)
(311,250)
(1,797,748)
(394,040)
7,268
57,464
(4,990)
(2,563)
57,179
(1,157)
56,022
1,482,376
(1,120,838)
(176,421)
(1,297,259)
(195,119)
(10,002)
18,333
-
6,878
(1,890)
13,319
- -
13,319
4,161,063
(2,830,145)
(566,990)
(3,397,135)
(668,923)
95,005
102,586
--
5,352
(5,509)
197,434
(2,331)
195,103
2,871,971
(2,068,069)
(357,773)
(2,425,842)
(375,628)
70,501
30,059
-
13,678
(4,653)
109,585
109,585
The annexed notes from 1 to 35 form an integral part of this unconsolidated condensed interim financial information.
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
19ADAMJEE INSURANCE
Unconsolidated Condensed Interim Statement of Comprehensive Income (Unaudited)For six months period ended 30 June 2019
30 June 2019 30 June 2018 30 June 2019 30 June 2018
For three months period ended For six months period ended
Rupees in thousand
Profit aster tax for the period
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Unrealized dimunition on 'available-for-sale'
investments - net of tax
Unrealized dimunition on 'available-for-sale' from Window
Takaful Operations - net of tax
Effect of currency translation of investment in foreign branches - net
Total comprehensive (loss) / income for the period
(122,383)
(1,031,125)
(441)
164,279
(989,670)
386,922
(1,325,269)
(1,201)
28,315
(911,233)
465,963
(893,507)
(18)
172,616
(254,946)
1,050,321
(579,389)
(442)
50,708
521,198
The annexed notes from 1 to 35 form an integral part of this unconsolidated condensed interim financial information.
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
Unconsolidated Condensed Interim Cash Flow Statement (Unaudited)For six months period ended 30 June 2019
30 June 2019 30 June 2018
For six months period ended
Rupees in thousand
Cash flows from operating activities
Underwriting activities
Insurance premium received
Reinsurance premium paid
Claims paid
Surrenders paid
Reinsurance and other recoveries received
Commissions paid
Commissions received
Other underwriting payments
Net cash generated from underwriting activities
Other operating activities
Income tax paid
Other operating payments
Loans advanced
Loans repayments received
Other operating receipts
Net cash used in other operating activities
Total cash generated from all operating activities
Cash flows from investing activities
Profit / return received on bank deposits
Income from Treasury Bills
Dividends received
Rentals received
Payments for investments
Proceeds from disposal of investments
Fixed capital expenditure - operating fixed assets
Fixed capital expenditure - intangible assets
Proceeds from disposal of operating fixed assets
Total cash used in investing activities
Cash flows from financing activities
Payments against lease liabilities
Dividends paid
Net cash used in financing activities
Net cash used in all activities
Cash at beginning of the period
Cash at end of the period
11,274,508
(3,353,024)
(7,207,715)
(37,034)
2,492,697
(1,213,350)
262,247
(1,439,065)
779,264
(142,392)
(26,069)
(35,185)
27,751
22,895
(153,000)
626,264
88,797
16,428
773,231
931
(4,600,659)
3,428,464
(489,669)
-
15,883
(766,594)
(46,506)
(518,283)
(564,789)
(705,119)
2,211,444
1,506,325
9,805,389
(3,143,166)
(7,228,627)
(29,961)
3,485,396
(809,623)
257,857
(1,468,422)
868,843
(495,905)
(31,567)
(30,356)
26,882
10,513
(520,433)
348,410
39,604
20,050
709,629
6,380
(5,723,397)
5,004,725
(409,222)
(2,468)
11,812
(342,887)
-
(315,785)
(315,785)
(310,262)
2,278,614
1,968,352
20 SIX MONTHS REPORT
21ADAMJEE INSURANCE
Unconsolidated Condensed Interim Cash Flow Statement (Unaudited)For six months period ended 30 June 2019
30 June 2019 30 June 2018
For six months period ended
Rupees in thousand
Reconciliation to profit and loss account
Operating cash flows
Depreciation expense
Provision for gratuity
Finance cost
Other income - bank and term deposits
(Loss) / gain on disposal of operating fixed assets
Provision for doubtful balances
Rental income
Increase / (decrease) in assets other than cash
(Increase) / decrease in liabilities other than running finance
Profit on sale of investments
Amortization expense
Increase in unearned premium
Increase in loans and other receivables
Income taxes paid
Increase in tax liabilities
Provision for impairment in value of 'available-for-sale' investments
Dividend and other income
Income from Treasury Bills
Income from Term Finance Certificates
Profit from Window Takaful Operations
Profit aster tax
Cash and cash equivalents for the purposes of the statement of cash flows consists of:
Cash and cash equivalents
Current and other accounts
Total cash and cash equivalents
626,264
(115,624)
(23,314)
(4,658)
90,575
(3,909)
(97,352)
1,689
2,108,934
(733,300)
2,568
(11,436)
(1,465,113)
7,435
142,392
(421,503)
(490,685)
773,231
21,910
-
57,859
465,963
4,923
1,501,402
1,506,325
348,410
(62,185)
(16,029)
64,870
4,619
-
-
5,030
(111,288)
716,736
449,506
(7,881)
(838,962)
3,474
495,905
(641,692)
(71,686)
651,730
12,767
2,716
44,281
1,050,321
5,458
1,962,894
1,968,352
The annexed notes from 1 to 35 form an integral part of this unconsolidated condensed interim financial information.
30 June 2019 30 June 2018
For six months period ended
Rupees in thousand
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
22 SIX MONTHS REPORT
Unconsolidated Condensed Interim Cash Flow Statement (Unaudited)For six months period ended 30 June 2019
Business Underwritten Inside Pakistan
30 June 2019 30 June 2018
For six months period ended
Rupees in thousand
Cash flows from operating activities
Underwriting activities
Insurance premium received
Reinsurance premiums paid
Claims paid
Surrenders paid
Reinsurance and other recoveries received
Commissions paid
Commissions received
Other underwriting payments
Net cash generated from underwriting activities
Other operating activities
Income tax paid
Other operating payments
Loans advanced
Loans repayments received
Other operating receipts
Net cash used in other operating activities
Total cash generated from all operating activities
Cash flows from investing activities
Profit / return received on bank deposits
Income from Treasury Bills
Dividends received
Rentals received
Payments for investments
Proceeds from disposal of investments
Fixed capital expenditure - operating fixed assets
Fixed capital expenditure - intangible assets
Proceeds from disposal of operating fixed assets
Total cash (used in) / generated from investing activities
Cash flows from financing activities
Dividends paid
Net cash used in financing activities
Net cash (used in) / generated from all activities
Cash at the beginning of the period
Cash at the end of the period
7,043,046
(3,287,244)
(3,472,180)
(37,034)
1,454,411
(553,864)
257,151
(947,354)
456,932
(142,392)
(20,557)
(25,594)
20,280
17,543
(150,720)
306,212
17,159
16,428
744,061
931
(1,732,139)
1,363,406
(487,489)
-
15,553
(62,090)
(36,202)
(518,283)
(554,485)
(310,363)
1,153,040
842,677
6,699,970
(3,004,175)
(4,169,425)
(29,961)
2,363,823
(457,643)
254,023
(1,023,134)
633,478
(495,905)
(26,799)
(22,067)
20,612
10,513
(513,646)
119,832
25,161
20,050
709,629
6,380
(2,492,789)
2,847,009
(402,750)
(185)
11,647
724,152
-
(315,785)
(315,785)
528,199
1,107,208
1,635,407
23ADAMJEE INSURANCE
Unconsolidated Condensed Interim Cash Flow Statement (Unaudited)For six months period ended 30 June 2019
30 June 2019 30 June 2018
For six months period ended
Rupees in thousand
Reconciliation to profit and loss account
Operating cash flows
Depreciation expense
Provision for gratuity
Finance cost
Other income - bank and term deposits
(Loss) / gain on disposal of operating fixed assets
Rental income
Increase / (decrease) in assets other than cash
(Increase) / decrease in liabilities other than running finance
Profit on sale of investments
Amortization expense
Increase in unearned premium
Increase in loans and other receivables
Income taxes paid
Provision for impairment in value of 'available-for-sale' investments
Dividend and other income
Income from treasury bills
Income from Term Finance Certificates
Profit from Window Takaful Operations
Profit before tax
Cash and cash equivalents for the purposes of the statement of cash flows consists of:
Cash and cash equivalents
Current and other accounts
Total cash and cash equivalents
306,212
(82,436)
(16,821)
(2,327)
11,807
(3,909)
1,689
1,286,258
(244,387)
2,568
(3,262)
(1,042,244)
3,678
142,392
(490,685)
744,061
21,910
-
57,859
692,363
4,268
838,409
842,677
119,832
(51,245)
(7,625)
-
20,652
4,985
5,030
(560,634)
1,266,870
449,506
(4,766)
(797,345)
1,455
495,905
(71,686)
651,730
12,767
2,716
44,281
1,582,428
5,440
1,629,967
1,635,407
The annexed notes from 1 to 35 form an integral part of this unconsolidated condensed interim financial information.
30 June 2019 30 June 2018
For six months period ended
Rupees in thousand
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
24 SIX MONTHS REPORT
Unconsolidated Condensed Interim Cash Flow Statement (Unaudited)For six months period ended 30 June 2019
Business Underwritten Outside Pakistan
30 June 2019 30 June 2018
For six months period ended
Rupees in thousand
Cash flows from operating activities
Underwriting activities
Insurance premium received
Reinsurance premiums paid
Claims paid
Reinsurance and other recoveries received
Commissions paid
Commissions received
Other underwriting payments
Net cash generated from underwriting activities
Other operating activities
Other operating payments
Loans advanced
Loans repayments received
Other operating receipts
Net cash used in other operating activities
Total cash generated from all operating activities
Cash flows from investing activities
Profit / return received on bank deposits
Dividends received
Payments for investments
Proceeds from disposal of investments
Fixed capital expenditure - operating fixed assets
Fixed capital expenditure - intangible assets
Proceeds from disposal of operating fixed assets
Total cash used in investing activities
Cash flows from financing activities
Payments against lease liabilities
Total cash used in financing activities
Net cash generated from all activities
Cash at beginning of the period
Cash at end of the period
4,231,462
(65,780)
(3,735,535)
1,038,286
(659,486)
5,096
(491,711)
322,332
(5,512)
(9,591)
7,471
5,352
(2,280)
320,052
71,638
29,170
(2,868,520)
2,065,058
(2,180)
-
330
(704,504)
(10,304)
(10,304)
(394,756)
1,058,404
663,648
3,105,419
(138,991)
(3,059,202)
1,121,573
(351,980)
3,834
(445,288)
235,365
(4,768)
(8,289)
6,270
-
(6,787)
228,578
14,443
-
(3,230,608)
2,157,716
(6,472)
(2,283)
165
(1,067,039)
-
-
(838,461)
1,171,406
332,945
25ADAMJEE INSURANCE
Unconsolidated Condensed Interim Cash Flow Statement (Unaudited)For six months period ended 30 June 2019
30 June 2019 30 June 2018
For six months period ended
Rupees in thousand
30 June 2019 30 June 2018
For six months period ended
Rupees in thousand
Reconciliation to profit and loss account
Operating cash flows
Depreciation expense
Provision for gratuity
Finance cost
Other income - bank and term deposits
Loss on disposal of operating fixed assets
Provision for doubtful balances
Increase in assets other than cash
Increase in liabilities other than running finance
Amortization expense
Increase in unearned premium
Increase in loans and other receivables
Dividend and other income
Profit before tax
Cash and cash equivalents for the purposes of the statement of cash flows consists of:
Cash and cash equivalents
Current and other accounts
Total cash and cash equivalents
320,052
(33,188)
(6,493)
(2,331)
78,768
-
(97,352)
822,676
(488,913)
(8,174)
(422,869)
3,757
29,170
195,103
655
662,993
663,648
228,578
(10,940)
(8,404)
-
44,218
(366)
-
449,346
(550,134)
(3,115)
(41,617)
2,019
-
109,585
18
332,927
332,945
The annexed notes from 1 to 35 form an integral part of this unconsolidated condensed interim financial information.
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
Unconsolidated Condensed Interim Statement of Changes in Equity (Unaudited)For six months period ended 30 June 2019
Share capital Capital reserves Revenue reserves
TotalIssued,
subscribed
and paid up
Reserve for
exceptional
losses
Investment
fluctuation
reserve
Exchange
translation
reserve
Generalreserve
Fair Value Reserve
Rupees in thousand
Unappropriated Profit
Balance as at 31 December 2017 - (Audited)
Comprehensive income for the period ended 30 June 2018
Profit for the period 01 January 2018 to 30 June 2018Other comprehensive income for the
period 01 January 2018 to 30 June 2018Total comprehensive income for the period
Transactions with owners of the CompanyFinal dividend for the year ended 31 December 2017
@ 10% (Rupee 1/- per share)Balance as at 30 June 2018 - (Unaudited)
Profit for the period 01 July 2018 to 31 December 2018Other comprehensive income for the
period 01 July 2018 to 31 December 2018Total comprehensive income for the period
Transactions with owners of the CompanyInterim dividend for the year ended 30 June 2018
@ 10% (Rupees 1/- per share)Balance as at 31 December 2018 - (Audited)
Profit for the period 01 January 2019 to 30 June 2019Other comprehensive income for the
period 01 January 2019 to 30 June 2019Total comprehensive income for the period
Transactions with owners of the CompanyFinal dividend for the year ended 31 December 2018
@ 15% (Rupees 1.5/- per share)
Balance as at 30 June 2019 - (Unaudited)
3,500,000
-
--
-3,500,000
-
--
3,500,000
-3,500,000
-
--
-
3,500,000
22,859
-
--
-22,859
-
--
22,859
-22,859
-
--
-
22,859
3,764
-
--
-3,764
-
--
3,764
-3,764
-
--
-
3,764
467,100
-
50,70850,708
-517,808
-
96,25496,254
614,062
-614,062
-
172,616172,616
-
786,678
3,570,278
-
(579,831)(579,831)
-2,990,447
(783,432)(783,432)
2,207,015
-2,207,015
-
(893,525)(893,525)
-
1,313,490
936,500
-
--
-936,500
-
--
936,500
-936,500
-
--
-
936,500
11,863,964
1,050,321
-1,050,321
(350,000)12,564,285
188,679
(23,806)164,873
12,729,158
(350,000)12,379,158
465,963
-465,963
(525,000)
12,320,121
20,364,465
1,050,321
(529,123)521,198
(350,000)20,535,663
188,679
(710,984)(522,305)
20,013,358
(350,000)19,663,358
465,963
(720,909)(254,946)
(525,000)
18,883,412
The annexed notes from 1 to 35 form an integral part of this unconsolidated condensed interim financial information.
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
26 SIX MONTHS REPORT
27ADAMJEE INSURANCE
1 Legal status and nature of business
Adamjee Insurance Company Limited ("the Company") is a public limited company incorporated in Pakistan on 28 September 1960 under the Companies Act, 1913 (now the Companies Act, 2017). The Company is listed on Pakistan Stock Exchange Limited and is engaged in the general insurance business comprising fire & property, marine, motor, accident and health and miscellaneous. The registered office of the Company is situated at Tanveer Building, 27-C-III, MM Alam Road, Gulberg III, Lahore.
The Company also operates through branches in the United Arab Emirates (UAE) and the Export Processing Zone (EPZ).
The Company was granted authorization on 23 December 2015 under Rule 6 of the Takaful Rules, 2012 to undertake Takaful Window Operations in respect of general takaful products by the Securities and Exchange Commission of Pakistan (SECP) and commenced Window Takaful Operations on 01 January 2016.
2 Basis of preparation and statement of compliance
This unconsolidated condensed interim financial information of the Company for the period ended 30 June 2019 has been prepared in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards comprise of:
- International Accounting Standard 34 - "Interim Financial Reporting", issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and
- Provision of and directives issued under the Companies Act, 2017 and the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012.
Where the provisions of and directives issued under the Companies Act, 2017 differ, the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012 have been followed.
In terms of the requirements of the Takaful Rules, 2012, read with SECP Circular 25 of 2015 dated 09 July 2015, the assets, liabilities and profit and loss of the Operator Fund of the Window Takaful operations of the Company have been presented as a single line item in the statement of financial position and profit and loss account of the Company respectively. A separate set of condensed interim financial information of the Window Takaful operations has been annexed to this financial information as per the requirements of the Takaful Rules, 2012.
This unconsolidated condensed interim financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with annual financial statements of the Company for the year ended 31 December 2018. Comparative figures for unconsolidated condensed interim statement of financial position are stated from annual audited financial statements of the Company for the year ended 31 December 2018, whereas comparatives for interim profit and loss account, interim statement of comprehensive income, interim statement of changes in equity and interim cash flow statement and related notes are extracted from unconsolidated condensed interim financial information of the Company for the six months ended 30 June 2018.
This unconsolidated condensed interim financial information is unaudited and being submitted to the shareholders as required under Section 237 of the Companies Act, 2017 and the listing regulations of Pakistan Stock Exchange Limited.
3 Basis of measurement
This unconsolidated condensed interim financial information has been prepared under historical cost convention except for certain foreign currency translation adjustments, certain financial instruments carried at fair value, and defined benefit obligations under employee benefits carried at present value. All transactions reflected in this financial information are on accrual basis except for those reflected in cash flow statement.
4 Accounting policies
The accounting policies and the methods of computation adopted in the preparation of the unconsolidated condensed interim financial information are same as those applied in the preparation of annual audited financial statements for the year ended 31 December 2018.
4.1 Standards, amendments or interpretations
The new and revised relevant IFRSs effective in the current period had no significant impact on the amounts reported and disclosures in these condensed interim financial information except the following :
IFRS 16
The Company has adopted IFRS 16 'Leases', issued in January 2016, with the date of initial application on 01 January 2019. IFRS 16 introduces significant changes to lessee accounting. It removes the distinction between operating and finance leases under IAS 17 and requires a lessee to recognize a right-of-use asset and a lease liability at lease commencement for all leases, except for short term leases and leases of low value assets.
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)
Lease Accounting
The Company initially measures the right-of-use asset at cost (present value of the future lease payments discounted using the discount rate implicit in the lease and initial cost) and subsequently measured at cost less accumulated depreciation and impairment losses adjusted for any remeasurement of the lease liability.
The Company initially measures the lease liability at the present value of the future lease payments discounted using the discount rate implicit in the lease. Subsequently, the lease liability is adjusted for interest and lease payments, as well as the impact of lease modifications, amongst others.
The Company has elected to apply the expedient allowed by IFRS 16 on its general requirements to short-term leases (i.e. one that does not include a purchase option and has a lease term at commencement date of 12 months or less) and leases of low value assets. The Comapny recognizes the lease payments associated with those leases as an expense on a straight-line basis over the lease term or another systematic basis if that basis is representative of the pattern of the lessee's benefits, similar to the current accounting for operating leases.
The Company has applied IFRS 16 using the modified retrospective approach and therefore the comparative information has not been restated. The Comapny has assessed that the impact of IFRS 16 is not material on opening retained earnings and as of reporting date has presented right-of-use assets within 'Property and equipment' and 'Finance lease liabilities' in the condensed interim statement of financial position.
Impacts on condensed interim financial information
As a result of initially applying IFRS 16, in relation to the leases that were previously classified as operating leases, the Company has recognized Rs. 132.27 million of right-of-use assets (included in property and equipment) and Rs. 134.22 million of lease liabilities as at 30 June 2019.
Also, in relation to those leases under IFRS 16, the Comapny has recognized depreciation and interest costs, instead of operating lease expense. During the six months period ended 30 June 2019, the Company recognized Rs. 45.429 million as depreciation expense and Rs. 4.658 million as interest cost.
IFRS 9
The amendments introduce two approaches for entities that apply IFRS 4 to reduce the impact of deferring effective dates with IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments: an overlay approach and a temporary exemption from applying IFRS 9. The Company has adopted for a temporary exemption from application of IFRS 9.
The effective date of the amendments permitting the temporary exemption is for annual periods beginning on or after 01 January 2018. The temporary exemption is available for annual reporting periods beginning before 01 January 2022 and will expire once IFRS 17 becomes effective.
5 Use of estimates and judgments
The preparation of this unconsolidated condensed interim financial information in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
During preparation of this unconsolidated condensed interim financial information, the significant judgments made by the management in applying the Company's accounting policies and the key sources of estimation and uncertainty were the same as those that applied in the preceding audited annual published financial statements of the Company for the year ended 31 December 2018.
6 Functional and presentation currency
This unconsolidated condensed interim financial information is presented in Pakistani Rupees, which is also the Company’s functional currency.
7 Insurance and Financial risk management
The Company's financial risk management objectives and policies are consistent with those disclosed in the unconsolidated annual financial statements for the year ended 31 December 2018.
For six months period ended 30 June 2019
28 SIX MONTHS REPORT
29ADAMJEE INSURANCE
30 June 2019Note
Rupees in thousand
(Unaudited) (Audited)
31 December 2018
8 Property and equipment
Opening balance - net book value 2,332,540 2,132,353
Additions during the period / year 8.1 53,884 291,109
Right -of- use assets 177,701 -
Less:
Book value of disposals during the period / year 8.2 (19,793) (16,733)
Depreciation charged during the period / year (115,624) (126,232)
Exchange gain 57,688 52,043
(77,729) (90,922)
2,486,396 2,332,540
Capital work in progress 1,617,558 1,181,773
4,103,954 3,514,313
8.1 Additions during the period / year - cost
Buildings 467 170,852
Furniture and fixtures 1,408 37,242
Motor vehicles 46,580 70,594
Machinery and equipments 3,140 4,619
Computer and related accessories 2,289 7,802
53,884 291,109
8.2 Written down values of property and equipment
disposed off during the period / year
Furniture and fixtures 10,379 -
Motor vehicles 5,144 16,404
Machinery and equipments 4,270 309
Computer and related accessories - 20
19,793 16,733
9 Intangible assets
Opening balance - net book value 79,185 34,242
Additions during the year - 59,285
Less:
Amortization charged during the period / year (11,436) (22,983)
Exchange difference 7,101 8,641
(4,335) (14,342)
74,850 79,185
10 Investment in a subsidiary
Adamjee Life Assurance Company Limited - at cost 694,895 694,895
694,895 694,895
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
30 June 2019
Rupees in thousand
(Unaudited) (Audited)
31 December 2018
(Unaudited) (Audited)
Rupees in thousand
31 December 2018
CostImpairment/
provisionCarrying value
30 June 2019
CostImpairment/
provisionCarrying value
11 Investment in equity securities
Available-for-sale
Related parties
Listed shares
Unlisted shared
Unrealized gain
Others
Listed shares
Unlisted shared
NIT Units
Mutual Funds
Unrealized gain
Total
8,396,663
550,726
8,947,389
7,345,164
925,360
161
440,724
8,711,409
17,658,798
(244,154)
-
(244,154)
(1,956,921)
-
-
-
(1,956,921)
(2,201,075)
8,152,509
550,726
8,703,235
381,033
9,084,268
5,388,243
925,360
161
440,724
6,754,488
1,468,980
8,223,468
17,307,736
8,396,663
300,726
8,697,389
7,274,808
925,360
161
389,312
8,589,641
17,287,030
(164,863)
-
(164,863)
(1,545,527)
-
-
-
(1,545,527)
(1,710,390)
8,231,800
300,726
8,532,526
1,295,559
9,828,085
5,729,281
925,360
161
389,312
7,044,114
1,812,888
8,857,002
18,685,087
12 Investment in debt securities
Held to maturity
Treasury Bills 381,663 378,029
381,663 378,029
13 Investments in Term DepositsHeld to maturity
Deposits maturing within 12 months
Inside Pakistan
- related parties 6,811 6,811 - others 26,447 25,066
33,258 31,877Outside Pakistan
- related parties 1,307,205 871,396 - others 4,527,894 3,411,149
5,835,099 4,282,5455,868,357 4,314,422
Deposits maturing aster 12 monthsInside Pakistan
- related parties 2,000 2,000 - others 39,691 39,691
41,691 41,691Outside Pakistan
- related parties - - - others - -
- -41,691 41,691
5,910,048 4,356,113
30 SIX MONTHS REPORT
31ADAMJEE INSURANCE
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)
13.1 These include fixed deposits amounting to Rs. 5,010,953 thousands (AED 115,000 thousands) [2018: Rs. 3,780,460 thousands (AED 100,000 thousands)] kept in accordance with the requirements of Insurance Regulations applicable to the UAE branches for the purpose of carrying on business in United Arab Emirates. These also include liens against cash deposits of Rs. 74,949 thousands (2018: Rs. 73,568 thousands) with banks in Pakistan essentially in respect of guarantees issued by the banks on behalf of the Company for claims under litigation filed against the Company and bid bond guarantees.
For six months period ended 30 June 2019
30 June 2019Note
Rupees in thousand
(Unaudited) (Audited)
31 December 2018
14 Loans and other receivables - considered good
Rent receivable 5,726 4,968Receivable from related parties 14.1 26,286 16,508Accrued investment income 63,874 62,096Security deposits 55,910 53,759Advances to employees and suppliers 100,728 58,542Agent commission receivable 2,088 24,085Loans to employees 53,984 44,913Other receivables 18,655 11,004
327,251 275,875
15 Insurance / reinsurance receivables - unsecured and considered good
Due from insurance contract holders 8,044,597 6,820,415Provision for impairment of receivables from
insurance contract holders (798,249) (629,668)7,246,348 6,190,747
Due from other insurers / reinsurers 1,118,782 1,044,532Provision for impairment of due from other
insurers / reinsurers (201,302) (201,302)917,480 843,230
8,163,828 7,033,977
16 Prepayments
Prepaid reinsurance premium ceded 3,543,053 2,866,980Prepaid rent 4,587 8,367Prepaid miscellaneous expenses 207,466 172,959
3,755,106 3,048,306
17 Cash and bank
Cash and cash equivalents
Inside Pakistan
Cash in hand 719 408Policy & Revenue stamps, Bond papers 3,549 5,895
4,268 6,303Outside PakistanCash in hand 655 -
4,923 6,303Cash at bank
Inside Pakistan
17.1
Current accounts 370,613 819,697Saving accounts 467,796 327,040
838,409 1,146,737Outside Pakistan
Current accounts 657,299 1,053,464Saving accounts 5,694 4,940
662,993 1,058,4041,501,402 2,205,141
1,506,325 2,211,444
14.1 This represents receivable from Adamjee Life Assurance Company Limited, subsidiary of the Company, in respect of cash value of corporate life policy obtained for key management personnel of the Company. Company is the beneficiary in respect of policies obtained for the employees.
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)
12 Investment in debt securities
Held-to-maturity
Others
Term Finance Certificate 12.1 70,948 70,948
Treasury Bills 655,066 370,884
726,014 441,832
12.1 Term Finance Certificate 75 75 1,000,000 70,948 70,948
70,948 70,948
Face value
31 March 2019Note
Rupees in thousand
(Unaudited) (Audited)
31 December 2018
31 March 2019
Rupees in thousand
31 December 2018
Rupees in thousand
31 March 2019 31 December 2018
No of certificates
For six months period ended 30 June 2019
17.1 Cash at bank includes an amount of Rs. 567,323 thousand (31 December 2018: Rs. 401,990 thousand) held with MCB Bank Limited, a related party of the Company.
30 June 2019
Rupees in thousand
(Unaudited) (Audited)
31 December 2018
30 June 2019
Rupees in thousand
(Unaudited) (Unudited)
30 June 2018
18 Window takaful operations - operator's fund
AssetsQard-e-Hasna 146,460 146,804Cash and bank deposits 141,882 101,695Investments 31,048 29,930Current assets - others 45,400 66,947Property and equipment 14,565 16,185Intagible assets 20,483 20,633Total Assets 399,838 382,194
Total liabilities 206,407 229,819
Wakala fee 155,995 112,717Commission expense (46,721) (25,702)Management expenses (59,394) (42,932)Other income 8,363 1,770Investment income 1,345 166Other Expenses (1,729) (1,738)Profit before tax 57,859 44,281Provision for tax (16,785) (15,362)Profit from Window Takaful Operations 41,074 28,919
19 Reserves
Capital reserves
Reserves for exceptional losses 22,859 22,859Investment fluctuation reserves 3,764 3,764Exchange translation reserves 786,678 614,062Fair value reserve 1,313,490 2,207,015
Revenue reservesGeneral reserves 936,500 936,500
3,063,291 3,784,200
20 Other creditors and accruals
Agents commission payable 753,674 708,645Federal Excise Duty / Sales Tax / VAT 260,484 200,803Federal Insurance Fee 85,745 37,729Workers' welfare fund 459,024 432,246Tax deducted at source 79,776 58,052Accrued expenses 128,811 191,541Unpaid and Unclaimed Dividend 128,067 121,350Payable to Employees' Provident Fund 2,639 2,449Sundry creditors 448,052 452,917
2,346,272 2,205,732
30 June 2019
Rupees in thousand
(Unaudited) (Audited)
31 December 2018
Details of total assets, total liabilities and segment disclosure of window takaful operations are stated in the annexed condensed interim financial information.
21 Contingencies and commitments
There has been no significant change in the contingencies and commitments since the date of preceding published annual financial statements for the year ended 31 December 2018.
32 SIX MONTHS REPORT
33ADAMJEE INSURANCE
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)
Wakala Fee 28,923
Commission expense (13,056) (5,748)
Management expense (21,051) (8,437)
Net Investment income 1,055 142
Profit from Window Takaful Operations 14,880
31 March 2019
Rupees in thousand
(Unaudited)
31 March 2018
(Unaudited)
52,862
19,810
For six months period ended 30 June 2019
30 June 2019 30 June 2018 30 June 2019 30 June 2018
For three months period ended For six months period ended
Rupees in thousand
22 Net insurance premium
Written gross premium
Unearned premium reserve opening
Unearned premium reserve closing
Currency translation effect
Premium earned
Reinsurance premium ceded
Prepaid reinsurance premium opening
Prepaid reinsurance premium closing
Currency translation effect
Reinsurance expense
22.1 Net insurance premium - Business underwritten inside Pakistan
Written gross premium
Unearned premium reserve opening
Unearned premium reserve closing
Premium earned
Reinsurance premium ceded
Prepaid reinsurance premium opening
Prepaid reinsurance premium closing
Reinsurance expense
22.2 Net insurance premium - Business underwritten outside Pakistan
Written gross premium
Unearned premium reserve opening
Unearned premium reserve closing
Currency translation effect
Premium earned
Reinsurance premium ceded
Prepaid reinsurance premium opening
Prepaid reinsurance premium closing
Currency translation effect
Reinsurance expense
5,873,553
10,802,642
(11,566,014)
606,309
5,716,490
(2,051,234)
(3,254,355)
3,543,053
(7,019)
(1,769,555)
3,946,935
4,009,414
6,030,336
(6,550,695)
3,489,055
(2,000,953)
(3,220,928)
3,480,705
(1,741,176)
1,747,879
1,864,139
4,772,306
(5,015,319)
606,309
2,227,435
(50,281)
(33,427)
62,348
(7,019)
(28,379)
2,199,056
5,954,000
8,136,283
(9,751,460)
205,164
4,543,987
(2,194,005)
(1,759,176)
2,648,778
(6,027)
(1,310,430)
3,233,557
4,189,933
4,740,133
(5,983,865)
2,946,201
(2,112,473)
(1,705,069)
2,622,522
(1,195,020)
1,751,181
1,764,067
3,396,150
(3,767,595)
205,164
1,597,786
(81,532)
(54,107)
26,256
(6,027)
(115,410)
1,482,376
12,129,819
10,100,901
(11,566,014)
671,251
11,335,957
(4,302,427)
(2,866,980)
3,543,053
(7,471)
(3,633,825)
7,702,132
8,129,229
5,508,453
(6,550,695)
7,086,987
(4,187,650)
(2,838,973)
3,480,705
(3,545,918)
3,541,069
4,000,590
4,592,448
(5,015,319)
671,251
4,248,970
(114,777)
(28,007)
62,348
(7,471)
(87,907)
4,161,063
9,648,166
8,912,498
(9,751,460)
354,680
9,163,884
(3,071,924)
(2,349,147)
2,648,778
(10,839)
(2,783,132)
6,380,752
6,696,459
5,186,518
(5,983,865)
5,899,112
(2,932,933)
(2,079,920)
2,622,522
(2,390,331)
3,508,781
2,951,707
3,725,980
(3,767,595)
354,680
3,264,772
(138,991)
(269,227)
26,256
(10,839)
(392,801)
2,871,971
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)
(Unaudited) (Unaudited)
20 Net Insurance Premium
Written Gross Premium 3,694,166 4,678,638
Add: Unearned premium reserve opening 8,912,498 7,349,511
Less: Unearned premium reserve closing 8,136,283 7,619,658
Add: Currency translation effect 149,516 1,220
Premium earned 4,619,897 4,409,711
Less: Reinsurance premium ceded 877,919 1,322,707
Add: Prepaid reinsurance premium opening 2,349,147 2,356,182
Less: Prepaid reinsurance premium closing 1,759,176 2,175,511
Add: Currency translation effect 4,812 141
Reinsurance expense 1,472,702 1,503,519
3,147,195 2,906,192
Quarter ended
31 March 2019
Rupees in thousand
Quarter ended
31 March 2018
For six months period ended 30 June 2019
30 June 2019 30 June 2018 30 June 2019 30 June 2018
For three months period ended For six months period ended
Rupees in thousand
23 Net insurance claims expenses
Claims paidOutstanding claims including IBNR closingOutstanding claims including IBNR openingCurrency translation effectClaim expense
Reinsurance and other recoveries receivedReinsurance and other recoveries in respect
of outstanding claims closingReinsurance and other recoveries in respect
of outstanding claims openingCurrency translation effectReinsurance and other recoveries revenue
23.1 Net insurance claims expenses - Business underwritten inside Pakistan
Claims paidOutstanding claims including IBNR closingOutstanding claims including IBNR opening
Claim expense
Reinsurance and other recoveries receivedReinsurance and other recoveries in respect
of outstanding claims closingReinsurance and other recoveries in respect
of outstanding claims openingReinsurance and other recoveries revenue
23.2 Net insurance claims expenses - Business underwritten outside Pakistan
Claims paidOutstanding claims including IBNR closingOutstanding claims including IBNR openingCurrency translation effectClaim expense
Reinsurance and other recoveries receivedReinsurance and other recoveries in respect
of outstanding claims closingReinsurance and other recoveries in respect
of outstanding claims openingCurrency translation effectReinsurance and other recoveries revenue
3,489,49410,669,875
(10,193,465)(727,786)
3,238,118
(1,110,205)
(6,227,154)
6,178,315378,020
(781,024)2,457,094
1,441,6774,572,871
(4,823,914)
1,190,634
(468,627)
(3,046,533)
3,295,122(220,038)970,596
2,047,8176,097,004
(5,369,551)(727,786)
2,047,484
(641,578)
(3,180,621)
2,883,193378,020
(560,986)1,486,498
4,421,19710,636,120
(11,426,866)(253,776)
3,376,675
(2,565,556)
(6,844,083)
7,917,116136,155
(1,356,368)2,020,307
2,738,4535,586,679
(6,630,290)
1,694,842
(1,902,964)
(4,097,999)
5,205,590(795,373)899,469
1,682,7445,049,441
(4,796,576)(253,776)
1,681,833
(662,592)
(2,746,084)
2,711,526136,155
(560,995)1,120,838
7,207,71510,669,875
(10,461,975)(800,778)
6,614,837
(2,467,176)
(6,227,154)
6,397,245417,133
(1,879,952)4,734,885
3,472,1804,572,871
(5,386,215)
2,658,836
(1,477,221)
(3,046,533)
3,769,658(754,096)
1,904,740
3,735,5356,097,004
(5,075,760)(800,778)
3,956,001
(989,955)
(3,180,621)
2,627,587417,133
(1,125,856)2,830,145
7,228,62710,636,120
(11,485,744)(454,985)
5,924,018
(3,554,402)
(6,844,083)
8,056,450249,501
(2,092,534)3,831,484
4,169,4255,586,679
(7,084,282)
2,671,822
(2,413,220)
(4,097,999)
5,602,812(908,407)
1,763,415
3,059,2025,049,441
(4,401,462)(454,985)
3,252,196
(1,141,182)
(2,746,084)
2,453,638249,501
(1,184,127)2,068,069
34 SIX MONTHS REPORT
35ADAMJEE INSURANCE
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
30 June 2019 30 June 2018 30 June 2019 30 June 2018
Three months period ended Six months period ended
Rupees in thousand
24 Net commission and other acquisition costs
Commission paid or payable
Deferred commission expense opening
Deferred commission expense closing
Currency translation effect
Net commission
Commission received or recoverable
Unearned reinsurance commission opening
Unearned reinsurance commission closing
Currency translation effect
Commision from reinsurance
24.1 Net commission and other acquisition costs - Business underwritten inside Pakistan
Commission paid or payable
Deferred commission expense opening
Deferred commission expense closing
Net commission
Commission received or recoverable
Unearned reinsurance commission opening
Unearned reinsurance commission closing
Commision from reinsurance
24.2 Net commission and other acquisition costs - Business underwritten outside Pakistan
Commission paid or payable
Deferred commission expense opening
Deferred commission expense closing
Currency translation effect
Net Commission
Commission received or recoverable
Unearned reinsurance commission opening
Unearned reinsurance commission closing
Currency translation effect
Commision from reinsurance
742,775
799,779
(1,075,282)
77,457
544,729
(173,192)
(195,759)
237,103
(603)
(132,451)
412,278
384,847
264,800
(417,247)
232,400
(171,507)
(191,511)
231,646
(131,372)
101,028
357,928
534,979
(658,035)
77,457
312,329
(1,685)
(4,248)
5,457
(603)
(1,079)
311,250
664,386
614,722
(855,030)
21,072
445,150
(167,526)
(195,862)
242,026
(294)
(121,656)
323,494
480,235
254,852
(471,649)
263,438
(165,838)
(188,720)
238,193
(116,365)
147,073
184,151
359,870
(383,381)
21,072
181,712
(1,688)
(7,142)
3,833
(294)
(5,291)
176,421
1,231,140
788,431
(1,075,282)
84,718
1,029,007
(262,247)
(221,371)
237,103
(661)
(247,176)
781,831
578,880
297,403
(417,247)
459,036
(257,151)
(218,690)
231,646
(244,195)
214,841
652,260
491,028
(658,035)
84,718
569,971
(5,096)
(2,681)
5,457
(661)
(2,981)
566,990
943,783
733,631
(855,030)
37,059
859,443
(257,857)
(240,306)
242,026
(665)
(256,802)
602,641
633,748
326,325
(471,649)
488,424
(254,023)
(227,726)
238,193
(243,556)
244,868
310,035
407,306
(383,381)
37,059
371,019
(3,834)
(12,580)
3,833
(665)
(13,246)
357,773
36 SIX MONTHS REPORT
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
25 Management Expenses
Employee benefit costTravelling expensesAdvertisement & sales promotionPrinting & stationaryDepreciationAmortizationRent, rates & taxesLegal & professional chargesElectricity, gas & waterEntertainmentVehicle running expensesOffice repairs & maintenanceBank chargesPostages, telegrams & telephoneSupervision feeIT related costsTracking and monitoring chargesProvision for doubtful balancesRegulatory FeeMiscellaneous
26 Investment Income
Business underwritten Inside Pakistan
Available-for-saleIncome from equity securities
Dividend income- associated undertakings- others
Income from debt securities - Held to maturity
Return on Term Finance CertificatesProfit on Treasury Bills
Income from Term Deposits
Return on Term Deposits
Net realized gains on investments
Realized gains on- associated undertakings- others
Provision of impairment in value of 'available-for-sale' investments
Business underwritten Outside Pakistan
Available-for-saleIncome from equity securities
Dividend income - associated undertakings - others
Return on Term Deposits
Net investment income
436,52017,72012,503
7,11859,044
5,9411,274
37,12911,418
7,16025,571
9,87020,090
9,55415,26024,01751,79597,35238,86814,071
902,275
191,309134,428325,737
-11,62011,620
1,0821,082
-2,1082,108
340,547
(505,385)(164,838)
-15,42715,427
42,037
57,464(107,374)
416,32019,18517,576
8,43233,126
2,37623,32513,71510,613
4,9304,342
10,27715,623
7,43314,09320,51252,076
-14,969
9,566
698,489
191,50876,699
268,207
1,3655,9407,305
1,4951,495
-345,291345,291622,298
(108,698)513,600
---
18,333
18,333531,933
887,78933,50634,16114,723
115,62411,43614,48862,34321,58613,81149,61422,10728,39919,55832,00245,361
113,24497,35272,78722,068
1,711,959
382,618361,443744,061
-21,91021,910
1,0821,082
-2,5682,568
769,621
(490,685)278,936
-29,17029,170
73,416
102,586381,522
830,27531,46230,57015,50665,300
4,76645,21029,94218,95111,039
8,46318,52922,14519,97925,29740,193
105,574-
22,39416,257
1,361,852
382,619269,111651,730
2,71612,76715,483
3,4283,428
-449,506449,506
1,120,147
(71,686)1,048,461
---
30,059
30,0591,078,520
30 June 2019 30 June 2018 30 June 2019 30 June 2018
For three months period ended For six months period ended
Rupees in thousand
37ADAMJEE INSURANCE
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
27 Other income
Return on bank balances
(Loss) / gain on sale of fixed assets
Return on loans to employee
Miscellaneous
28 Other expenses
Legal & professional charges - Other
Auditors' remuneration
Subscription Fee
Donations
Workers welfare fund
Others
29 Earnings per share - basic and diluted
There is no dilutive effect on the basic earnings per share which is based on:
Net profit aster tax for the period
Weighted average number of shares
Earnings (aster tax) per share
1,632
(8,101)
67
(535)
(6,937)
6,697
2,654
1,184
-
10,073
1,497
22,105
(122,383)
350,000,000
(0.35)
18,650
3,250
88
2,531
24,519
13,613
1,211
1,215
300
16,135
2,522
34,996
386,922
350,000,000
1.11
16,077
(3,909)
140
18,136
30,444
14,021
5,531
2,519
-
26,778
3,998
52,847
465,963
350,000,000
1.33
31,383
4,619
179
10,335
46,516
21,179
3,157
2,782
800
35,542
3,649
67,109
1,050,321
350,000,000
3.00
30 June 2019 30 June 2018 30 June 2019 30 June 2018
For three months period ended For six months period ended
Rupees in thousand
30 June 2019 30 June 2018 30 June 2019 30 June 2018
For three months period ended For six months period ended
Rupees in thousand
Number of shares
Rupees
38 SIX MONTHS REPORT
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)
30 Transactions with related parties
The Company has related party relationships with its associates, subsidiary company, employee retirement benefit plans, key management personnel and other parties. Transactions are entered into with such related parties for the issuance of policies to and disbursements of claims incurred by them and payments of rentals for the use of premises rented from them. There are no transactions with key management personnel other than those specified in their terms of employment.
Investment in related parties have been disclosed in note 10, 11 and 13 to the unconsolidated condensed interim financial information. Other transactions with related parties are summarized as follows:
For six months period ended 30 June 2019
i) Transactions
Subsidiary company
Premiums underwritten 13,753 12,372
Premiums received 11,707 12,199
Claims paid 5,490 3,391
Claims received 2,500 2,500
Premium paid 2,543 2,445
Rent paid 750 -
Rent / service charges received 517 -
Other related parties
Premiums underwritten 787,145 845,012
Premiums received 725,376 769,300
Claims paid 314,925 397,584
Commission paid 52,015 26,907
Rent paid 4,930 2,413
Dividends received 391,050 191,309
Dividends paid 106,292 98,193
Income on bank deposits 20,803 13,332
Investments made 250,000 293,093
Fee / service charges paid 1,604 3,001
Charge in respect of gratuity expense 23,314 16,457
Contribution to Employees' Provident Fund 16,805 15,439
Compensation paid to Key
management personnel 656,890 557,260
ii) Period end balances
Subsidiary company
Balances receivable 28,722 16,892
Balances payable 1,881 2,085
Other related parties
Balances receivable 332,393 349,502
Balances payable 396,421 761,866
Cash and bank balances including
Term Deposit Receipts 1,883,339 1,282,197
Payable to Staff Gratuity Fund 139,947 133,127
30 June 2019 30 June 2018
For six months period ended
Rupees in thousand
30 June 2019
Rupees in thousand
(Unaudited)
(Unaudited)
(Audited)
(Unadited)
31 December 2018
Payable to Employees' Provident Fund 2,639 2,449
39ADAMJEE INSURANCE
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
31
Seg
men
t In
form
ati
on
Pre
miu
m r
ecei
vab
le (I
nclu
sive
of f
eder
al e
xcis
e du
ty,
Fed
eral
insu
ranc
e fe
e an
d A
dmin
istr
ativ
e su
rcha
rge)
4,77
3,03
928
,338
485,
939
13,1
031,
726,
037
4,13
0,51
41,
123,
021
19,7
981,
057,
558
11,2
839,
165,
594
4,20
3,03
61
3,3
68
,63
0
Fed
eral
exc
ise
duty
(590
,141
)(1
,850
)(5
3,31
5)(2
60)
(206
,060
)(1
98,7
23)
(21,
338)
(943
)(8
4,40
4)(5
65)
(955
,258
)(2
02,3
41)
(1,1
57
,59
9)
Fed
eral
insu
ranc
e fe
e(4
1,03
0)(7
3)(4
,298
)(2
7)(1
5,21
0)-
(10,
976)
-(9
,593
)(5
)(8
1,10
7)(1
05)
(81
,21
2)
4,14
1,86
826
,415
428,
326
12,8
161,
504,
767
3,93
1,79
11,
090,
707
18,8
5596
3,56
110
,713
8,12
9,22
94,
000,
590
12
,12
9,8
19
Gro
ss w
ritte
n pr
emiu
m (i
nclu
sive
of
adm
inis
trat
ive
surc
harg
e)4,
141,
868
26,4
1542
8,32
612
,816
1,50
4,76
73,
931,
791
1,09
0,70
718
,855
963,
561
10,7
138,
129,
229
4,00
0,59
01
2,1
29
,81
9
Gro
ss d
irect
pre
miu
m4,
130,
334
26,2
8241
7,38
712
,775
1,45
5,92
13,
926,
283
1,09
1,40
518
,855
957,
637
10,6
718,
052,
684
3,99
4,86
61
2,0
47
,55
0
Facu
ltat
ive
inw
ard
prem
ium
2,73
0-
328
--
--
--
-3,
058
-3
,05
8
Adm
inis
trat
ive
surc
harg
e8,
804
133
10,6
1141
48,8
465,
508
(698
)-
5,92
442
73,4
875,
724
79
,21
1
4,14
1,86
826
,415
428,
326
12,8
161,
504,
767
3,93
1,79
11,
090,
707
18,8
5596
3,56
110
,713
8,12
9,22
94,
000,
590
12
,12
9,8
19
Insu
ranc
e pr
emiu
m e
arne
d3,
473,
207
22,8
4840
8,99
718
,443
1,43
3,73
94,
174,
081
873,
920
25,5
5189
7,12
48,
047
7,08
6,98
74,
248,
970
11
,33
5,9
57
Insu
ranc
e pr
emiu
m c
eded
to
rein
sure
rs(3
,027
,656
)(1
5,73
5)(5
2,48
7)-
(25,
917)
(49,
848)
-(1
8,10
2)(4
39,8
58)
(4,2
22)
(3,5
45,9
18)
(87,
907)
(3,6
33
,82
5)
Net
insu
ranc
e pr
emiu
m44
5,55
17,
113
356,
510
18,4
431,
407,
822
4,12
4,23
387
3,92
07,
449
457,
266
3,82
53,
541,
069
4,16
1,06
37
,70
2,1
32
Com
mis
sion
inco
me
176,
778
2,89
738
3-
1,74
4(9
64)
--
65,2
901,
048
244,
195
2,98
12
47
,17
6
Ne
t u
nd
erw
riti
ng
in
com
e6
22
,32
91
0,0
10
35
6,8
93
18
,44
31
,40
9,5
66
4,1
23
,26
98
73
,92
07
,44
95
22
,55
64
,87
33
,78
5,2
64
4,1
64
,04
47
,94
9,3
08
Insu
ranc
e cl
aim
s(5
71,5
49)
(14,
066)
(256
,627
)(7
,017
)(7
35,5
08)
(3,9
11,6
49)
(740
,059
)(2
0,38
8)(3
55,0
93)
(2,8
81)
(2,6
58,8
36)
(3,9
56,0
01)
(6,6
14
,83
7)
Insu
ranc
e cl
aim
rec
over
ies
from
rei
nsu
rers
521,
372
18,4
6353
,423
-(7
,007
)1,
088,
723
-16
,687
186,
308
1,98
375
4,09
61,
125,
856
1,8
79
,95
2
Net
cla
ims
(50,
177)
4,39
7(2
03,2
04)
(7,0
17)
(742
,515
)(2
,822
,926
)(7
40,0
59)
(3,7
01)
(168
,785
)(8
98)
(1,9
04,7
40)
(2,8
30,1
45)
(4,7
34
,88
5)
Com
mis
sion
exp
ense
(213
,180
)(2
,969
)(5
5,19
4)(3
,287
)(9
6,88
8)(5
63,4
36)
(28,
982)
(34)
(64,
792)
(245
)(4
59,0
36)
(569
,971
)(1
,02
9,0
07
)
Man
agem
ent
expe
nses
(190
,459
)(8
26)
(129
,377
)(6
,071
)(5
21,0
57)
(653
,778
)(6
9,00
1)(7
,804
)(1
33,1
42)
(444
)(1
,043
,036
)(6
68,9
23)
(1,7
11
,95
9)
Net
insu
ranc
e cl
aim
s an
d ex
pens
es(4
53,8
16)
602
(387
,775
)(1
6,37
5)(1
,360
,460
)(4
,040
,140
)(8
38,0
42)
(11,
539)
(366
,719
)(1
,587
)(3
,406
,812
)(4
,069
,039
)(7
,47
5,8
51
)
Un
de
rwri
tin
g r
esu
lt1
68
,51
31
0,6
12
(30
,88
2)
2,0
68
49
,10
68
3,1
29
35
,87
8(4
,09
0)
15
5,8
37
3,2
86
37
8,4
52
95
,00
54
73
,45
7
Net
inve
stm
ent
inco
me
278,
936
102,
586
38
1,5
22
Ren
tal i
nco
me
1,68
9-
1,6
89
Oth
er in
com
e25
,092
5,35
23
0,4
44
Oth
er e
xpen
ses
(47,
338)
(5,5
09)
(52
,84
7)
Fin
ance
cos
t(2
,327
)(2
,331
)(4
,65
8)
Pro
fit fr
om W
indo
w T
akaf
ul O
pera
tions
57,8
59-
57
,85
9
Pro
fit
be
fore
ta
x6
92
,36
31
95
,10
38
87
,46
6
Seg
men
t A
sset
s8,
100,
300
107,
336
536,
497
8,79
11,
295,
348
5,95
8,46
181
1,95
752
,991
2,11
9,30
518
,332
12,8
63,4
076,
145,
911
19
,00
9,3
18
Una
lloca
ted
Ass
ets
--
--
--
--
--
23,6
12,2
447,
306,
368
30
,91
8,6
12
36
,47
5,6
51
13
,45
2,2
79
49
,92
7,9
30
Seg
men
t L
iab
ilitie
s7,
712,
778
118,
703
692,
017
26,9
612,
775,
803
11,0
65,0
011,
638,
407
53,3
892,
508,
800
20,8
1715
,327
,805
11,2
84,8
712
6,6
12
,67
6U
nallo
cate
d Li
abili
ties
--
--
--
--
--
3,62
7,33
780
4,50
54
,43
1,8
42
18
,95
5,1
42
12
,08
9,3
76
31
,04
4,5
18
30
Ju
ne
20
19
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Rup
ee
s in t
ho
usa
nd
Fir
e a
nd
pro
pe
rty d
am
ag
eM
ari
ne
, a
via
tio
n a
nd
tra
nsp
ort
Mo
tor
He
alt
hM
isce
lla
ne
ous
To
tal
Ag
gre
ga
teIn
sid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Rup
ee
s in t
ho
usa
nd
Fir
e a
nd
pro
pe
rty d
am
ag
eM
ari
ne
, a
via
tio
n a
nd
tra
nsp
ort
Mo
tor
He
alt
hM
isce
lla
ne
ous
To
tal
Ag
gre
ga
teIn
sid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Six
mo
nth
per
iod
en
ded
30
Ju
ne
20
19
40 SIX MONTHS REPORT
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
31
.1S
egm
ent
Info
rma
tio
n
Pre
miu
m re
ceiv
able
(Inc
lusi
ve o
f fed
eral
exc
ise
duty
,
Fed
eral
insu
ranc
e fe
e an
d A
dmin
istr
ativ
e su
rcha
rge)
3,49
9,30
418
,454
533,
639
15,1
901,
689,
147
3,04
8,40
51,
016,
038
9,47
279
4,59
78,
022
7,53
2,72
53,
099,
543
10,6
32,2
68
Fed
eral
exc
ise
duty
(451
,277
)(9
37)
(60,
734)
(417
)(2
01,6
31)
(145
,577
)-
(451
)(5
5,75
1)(4
18)
(769
,393
)(1
47,8
00)
(917
,193
)
Fed
eral
insu
ranc
e fe
e(3
0,23
3)(2
0)(4
,711
)(1
2)(1
4,73
1)-
(10,
060)
-(7
,138
)(4
)(6
6,87
3)(3
6)(6
6,90
9)
3,01
7,79
417
,497
468,
194
14,7
611,
472,
785
2,90
2,82
81,
005,
978
9,02
173
1,70
87,
600
6,69
6,45
92,
951,
707
9,64
8,16
6
Gro
ss w
ritte
n pr
emiu
m (i
nclu
sive
of
adm
inis
trat
ive
surc
harg
e)3,
017,
794
17,4
9746
8,19
414
,761
1,47
2,78
52,
902,
828
1,00
5,97
89,
021
731,
708
7,60
06,
696,
459
2,95
1,70
79,
648,
166
Gro
ss d
irect
pre
miu
m3,
010,
078
17,4
4845
7,43
414
,699
1,42
5,36
02,
901,
544
1,00
5,60
29,
021
694,
361
7,57
86,
592,
835
2,95
0,29
09,
543,
125
Fac
ulta
tive
inw
ard
prem
ium
(322
)-
65-
--
--
30,9
99-
30,7
42-
30,7
42
Adm
inis
trat
ive
surc
harg
e8,
038
4910
,695
6247
,425
1,28
437
6-
6,34
822
72,8
821,
417
74,2
99
3,01
7,79
417
,497
468,
194
14,7
611,
472,
785
2,90
2,82
81,
005,
978
9,02
173
1,70
87,
600
6,69
6,45
92,
951,
707
9,64
8,16
6
Insu
ranc
e pr
emiu
m e
arne
d2,
401,
610
20,0
9743
2,92
215
,038
1,34
2,89
93,
218,
210
928,
738
5,59
179
2,94
35,
836
5,89
9,11
23,
264,
772
9,16
3,88
4
Insu
ranc
e pr
emiu
m c
eded
to
rein
sure
rs(1
,964
,566
)(1
2,69
4)(5
7,33
4)-
(20,
156)
(371
,591
)-
(5,4
28)
(348
,275
)(3
,088
)(2
,390
,331
)(3
92,8
01)
(2,7
83,1
32)
Net
insu
ranc
e pr
emiu
m43
7,04
47,
403
375,
588
15,0
381,
322,
743
2,84
6,61
992
8,73
816
344
4,66
82,
748
3,50
8,78
12,
871,
971
6,38
0,75
2
Com
mis
sion
inco
me
176,
229
3,67
336
3-
88,
446
--
66,9
561,
127
243,
556
13,2
4625
6,80
2
Net
und
erw
riti
ng in
com
e61
3,27
311
,076
375,
951
15,0
381,
322,
751
2,85
5,06
592
8,73
816
351
1,62
43,
875
3,75
2,33
72,
885,
217
6,63
7,55
4
Insu
ranc
e cl
aim
s(9
02,8
01)
340
(97,
703)
(592
)(6
66,6
12)
(3,2
47,1
00)
(802
,647
)(5
,093
)(2
02,0
59)
249
(2,6
71,8
22)
(3,2
52,1
96)
(5,9
24,0
18)
Insu
ranc
e cl
aim
reco
verie
s fr
om re
insu
rers
793,
543
(2,2
29)
(25,
081)
-52
,870
1,18
1,61
9-
4,92
387
,075
(186
)90
8,40
71,
184,
127
2,09
2,53
4
Net
cla
ims
(109
,258
)(1
,889
)(1
22,7
84)
(592
)(6
13,7
42)
(2,0
65,4
81)
(802
,647
)(1
70)
(114
,984
)63
(1,7
63,4
15)
(2,0
68,0
69)
(3,8
31,4
84)
Com
mis
sion
exp
ense
(212
,692
)(2
,530
)(6
0,40
6)(2
,466
)(1
03,0
70)
(364
,700
)(2
8,22
8)(7
49)
(84,
028)
(574
)(4
88,4
24)
(371
,019
)(8
59,4
43)
Man
agem
ent
expe
nses
(186
,391
)(4
15)
(124
,822
)(3
,012
)(4
80,0
97)
(367
,089
)(7
0,03
7)(2
,783
)(1
24,8
77)
(2,3
29)
(986
,224
)(3
75,6
28)
(1,3
61,8
52)
Net
insu
ranc
e cl
aim
s an
d ex
pens
es(5
08,3
41)
(4,8
34)
(308
,012
)(6
,070
)(1
,196
,909
)(2
,797
,270
)(9
00,9
12)
(3,7
02)
(323
,889
)(2
,840
)(3
,238
,063
)(2
,814
,716
)(6
,052
,779
)
Und
erw
riti
ng r
esul
t10
4,93
26,
242
67,9
398,
968
125,
842
57,7
9527
,826
(3,5
39)
187,
735
1,03
551
4,27
470
,501
584,
775
Net
inve
stm
ent
inco
me
1,04
8,46
130
,059
1,07
8,52
0
Ren
tal i
ncom
e5,
030
-5,
030
Oth
er in
com
e32
,838
13,6
7846
,516
Oth
er e
xpen
ses
(62,
456)
(4,6
53)
(67,
109)
Pro
fit fr
om W
indo
w T
akaf
ul O
pera
tions
44,2
81-
44,2
81
Pro
fit b
efor
e ta
x1,
582,
428
109,
585
1,69
2,01
3
Seg
men
t A
sset
s7,
344,
826
70,5
8565
2,69
112
,632
1,21
0,74
65,
236,
105
596,
098
43,8
841,
906,
664
12,4
0311
,711
,025
5,37
5,60
917
,086
,634
Una
lloca
ted
Ass
ets
--
--
--
--
--
24,8
02,2
175,
956,
243
30,7
58,4
60
36,5
13,2
4211
,331
,852
47,8
45,0
94
Seg
men
t Li
abili
ties
7,28
7,01
189
,828
695,
068
21,9
402,
592,
722
9,51
4,02
11,
341,
301
46,3
262,
301,
540
12,1
9114
,217
,642
9,68
4,30
623
,901
,948
Una
lloca
ted
Liab
ilitie
s-
--
--
--
--
-3,
547,
687
732,
101
4,27
9,78
8
17,7
65,3
2910
,416
,407
28,1
81,7
36
Six
mo
nth
pe
rio
d e
nd
ed
30
Ju
ne
20
18
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Rup
ee
s in t
ho
usa
nd
Fir
e a
nd
pro
pe
rty d
am
ag
eM
ari
ne
, a
via
tio
n a
nd
tra
nsp
ort
Mo
tor
He
alt
hM
isce
lla
ne
ous
To
tal
Ag
gre
ga
teIn
sid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
31
De
cem
be
r 2
01
8
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Rup
ee
s in t
ho
usa
nd
Fir
e a
nd
pro
pe
rty d
am
ag
eM
ari
ne
, a
via
tio
n a
nd
tra
nsp
ort
Mo
tor
He
alt
hM
isce
lla
ne
ous
To
tal
Ag
gre
ga
teIn
sid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
Insid
e
Pa
kis
tan
Ou
tsid
e
Pa
kis
tan
41ADAMJEE INSURANCE
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)
32 Fair value measurement of financial instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is the presumption that the company is a going concern and there is no intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.
IFRS 13 'Fair Value Measurement' requires the company to classify fair value measurements in fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value. It has the following levels:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
- Inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
- Inputs for the asset or liability that are not based on observable market data (that is, unadjusted) inputs (Level 3)
Transfer between levels of the fair value hierarchy are recognized at the end of the reporting period during which the changes have occurred.
For six months period ended 30 June 2019
11
11
12
18
14
13
15
16
17
18
20
18
14,830,126
3,172,505
-
31,048
-
-
-
-
-
-
-
-
18,033,679
-
-
-
-
-
-
-
-
-
327,251
-
8,163,828
5,897,373
329,781
3,755,106
-
226,908
18,700,247
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,506,325
141,882
1,648,207
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,669,875
3,771,020
2,213,112
206,407
16,860,414
14,830,126
3,172,505
381,663
31,048
327,251
5,910,048
8,163,828
5,897,373
329,781
3,755,106
1,506,325
368,790
44,673,844
10,669,875
3,771,020
2,213,112
206,407
16,860,414
14,830,126
-
-
31,048
-
-
-
-
-
-
-
-
14,861,174
-
-
-
-
-
-
-
381,663
-
-
-
-
-
-
-
-
-
381,663
-
-
-
-
-
-
3,172,505
-
-
-
-
-
-
-
-
-
-
3,172,505
-
-
-
-
-
14,830,126
3,172,505
381,663
31,048
-
-
-
-
-
-
-
-
18,415,342
-
-
-
-
-
* The Company has not disclosed the fair value of these items because their carrying amounts are a reasonable approximation of fair value.
Financial assets - measured at fair value
Investment
Equity securities- qouted
Equity securities- unqouted
Debt securities
Financial assets - not measured at fair value
Loans and other receivables *
Investment - Term Deposits*
Insurance / reinsurance receivables
- unsecured and considered good *
Reinsurance recoveries against outstanding claims *
Salvage recoveries accrued *
Prepayments
Cash and bank *
Financial liabilities - not measured at fair value
Underwriting provisions:
Outstanding claims (including IBNR)*
Insurance / reinsurance payables *
Other creditors and accruals*
Other Assets of Window Takaful Operations -
Operator's Fund*
Total liabilities of Window Takaful Operations-
Operator's Fund*
Investments of Window Takaful Operations -
Operator's Fund
-
-
381,663
-
-
5,910,048
-
-
-
-
-
-
6,291,711
-
-
-
-
-
-
-
-
30 June 2019
Availablefor sale
Receivablesand other
financial assets
Cash andcash
equivalents
Otherfinancialliabilities
Total Level 1 Level 2 Level 3 TotalNote
Rupees in thousand
Held tomaturity
42 SIX MONTHS REPORT
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)
32.1 Fair value measurement of financial instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is the presumption that the company is a going concern and there is no intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.
IFRS 13 'Fair Value Measurement' requires the company to classify fair value measurements in fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value. It has the following levels:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
- Inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
- Inputs for the asset or liability that are not based on observable market data (that is, unadjusted) inputs (Level 3)
Transfer between levels of the fair value hierarchy are recognized at the end of the reporting period during which the changes have occurred.
For six months period ended 30 June 2019
Financial assets - measured at fair value
Investment
Equity securities- qouted
Equity securities- unqouted
Debt securities
Financial assets - not measured at fair value
Loans and other receivables *
Investment - Term Deposits*
Insurance / reinsurance receivables
- unsecured and considered good *
Reinsurance recoveries against outstanding claims *
Salvage recoveries accrued *
Prepayments *
Cash and bank *
Financial liabilities - not measured at fair value
Underwriting provisions:
Outstanding claims (including IBNR)*
Insurance / reinsurance payables *
Other creditors and accruals*
11
11
12
18
14
13
15
16
17
18
20
18
16,457,477
2,922,505
-
29,930
-
-
-
-
-
-
-
-
19,409,912
-
-
-
-
-
-
-
378,029
-
-
4,356,113
-
-
-
-
-
-
4,734,142
-
-
-
-
-
-
-
-
-
275,875
-
7,033,977
6,046,905
350,340
3,048,306
-
250,569
17,005,972
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,211,444
101,695
2,313,139
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,461,975
2,709,714
2,227,040
229,819
15,628,548
16,457,477
2,922,505
378,029
29,930
275,875
4,356,113
7,033,977
6,046,905
350,340
3,048,306
2,211,444
352,264
43,463,165
10,461,975
2,709,714
2,227,040
229,819
-
15,628,548
16,457,477
-
-
29,930
-
-
-
-
-
-
-
-
16,487,407
-
-
-
-
-
-
-
378,029
-
-
-
-
-
-
-
-
-
378,029
-
-
-
-
-
-
2,922,505
-
-
-
-
-
-
-
-
-
-
2,922,505
-
-
-
-
-
16,457,477
2,922,505
378,029
29,930
-
-
-
-
-
-
-
-
19,787,941
-
-
-
-
-
-
* The Company has not disclosed the fair value of these items because their carrying amounts are a reasonable approximation of fair value.
Investments of Window Takaful Operations -
Operator's Fund
Other Assets of Window Takaful Operations -
Operator's Fund*
Total liabilities of Window Takaful Operations-
Operator's Fund*
31 Deceber 2018
Availablefor sale
Receivablesand other
financial assets
Cash andcash
equivalents
Otherfinancialliabilities
Total Level 1 Level 2 Level 3 TotalNote
Rupees in thousand
Held tomaturity
43ADAMJEE INSURANCE
33 Date of authorization for issue
This unconsolidated condensed interim financial information was approved for issue on 23 August 2019 by the Board of Directors of the Company.
34 Non-adjusting events after statement of financial position date
The Board of Directors of the Company in their meeting held on 23 August 2019 proposed an interim cash dividend for the six month period ended 30 June 2019 @ 10% i.e. Rupee 1/- per share (30 June 2018 @ 10 % i.e. Rupee 1/- per share). This unconsolidated condensed interim financial information for the six month period ended 30 June 2019 does not include the effect of this appropriation which will be accounted for in the unconsolidated financial statements for the year ending 31 December 2019.
35 General
35.1 Corresponding figures have been rearranged and reclassified for better presentation, wherever considered necessary.
35.2 Figures have been rounded off to the nearest thousand rupees unless other wise stated.
Notes to the Unconsolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
44 SIX MONTHS REPORT
45ADAMJEE INSURANCE
On behalf of the Board, We are pleased to present the consolidated condensed interim financial information of Adamjee Insurance Company Limited and its subsidiary, Adamjee Life Assurance Company Limited, for six months period ended 30 June 2019.
The following appropriation of profit has been recommended by the Board of Directors:
Directors’ Review to the members on Consolidated Condensed Interim Financial InformationFor six months period ended 30 June 2019
On Behalf of Board of Directors
Lahore: 23 August 2019 Managing Director &
Muhammad Ali Zeb
Chief Executive Officer
(Unaudited) (Unaudited)
Profit before tax 1,749,805
Taxation (641,061)
Profit aster tax 1,108,744
Less: Profit attributable to non-controlling interest (15,026)
Profit attributable to ordinary shares 1,093,718
Unappropriated profit brought forward 11,955,927
Profit available for appropriation 13,049,645
Final dividend for the year ended 31 December 2018 @ 15% (Rupees 1.5/- per share)
31 December 2017 @ 10% (Rupee 1/- per share) (350,000)
Profit aster appropriation 12,699,645
Earnings per share - Basic and diluted 3.13
1,015,171
(465,194)
549,977
(21,608)
528,369
12,521,272
13,049,641
(525,000)
12,524,641
1.51
30 June 2019 30 June 2018
Rupees in thousand
30 June 2019 30 June 2018
Rupees
Shaikh Muhammad Jawed
Director
(Unadited) (Unadited)
Restated
Restated
46 SIX MONTHS REPORT
47ADAMJEE INSURANCE
CONSOLIDATEDCondensed Interim
Financial Informationfor the Six Months Ended
30 June 2019(Unaudited)
48 SIX MONTHS REPORT
Consolidated Condensed Interim
As at 30 June 2019
Statement of Financial Position
ASSETSProperty and equipment 8 4,432,983 3,673,804Intangible assets 9 143,796 160,602Investment property 876,394 855,394Investments
Equity securities 10 30,027,066 32,359,408Debt securities 11 4,352,703 4,416,804Term deposits 12 13,878,048 15,426,113
Loan secured against life insurance policies 39,943 34,556Loans and other receivables 13 682,387 552,070Insurance / reinsurance receivables 14 8,243,527 7,162,077Reinsurance recoveries against outstanding claims 5,897,373 6,046,905Salvage recoveries accrued 329,781 350,340Deferred commission expense / acquisition cost 1,075,282 788,431Taxation - payment less provisions - 172,124Prepayments 15 3,815,261 3,116,455Cash and bank 16 8,622,181 5,523,097
82,416,725 80,638,180Total assets of Window Takaful Operations
- Operator's Fund (Holding Company) 17 399,838 382,194TOTAL ASSETS 82,816,563 81,020,374
EQUITY AND LIABILITIESCapital and reserves attributable to the Company's equity holders
Ordinary share capital 3,500,000 3,500,000Reserves 18 3,061,543 3,781,282Unappropriated Profit 12,524,641 12,521,272Equity attributable to equity holders of the parent 19,086,184 19,802,554Non-controlling interest 310,810 288,797Total Equity 19,396,994 20,091,351
LiabilitiesInsurance liabilities 31,637,615 31,730,169Underwriting provisions: Outstanding claims including IBNR 10,669,875 10,461,975 Unearned premium reserve 11,566,014 10,100,901 Unearned reinsurance commission 237,103 221,371Retirement benefits obligations 222,303 184,560Deferred taxation 680,857 985,157Premium received in advance 715,864 801,168Insurance / reinsurance payables 3,771,020 2,709,714Other creditors and accruals 19 2,730,278 2,812,103Lease liability 289,198 -Deposits and other payables 672,093 692,086Taxation - payment less provisions 20,942 -
31,575,547 28,969,035Total Liabilities of Window Takaful Operations
- Operator's Fund (Holding Company) 17 206,407 229,819TOTAL EQUITY AND LIABILITIES 82,816,563 81,020,374
Contingencies and commitments 20
The annexed notes from 1 to 31 form an integral part of this consolidated condensed interim financial information.
30 June 2019Note
Rupees in thousand
(Unaudited) (Audited)
31 December 2018
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
Consolidated Condensed Interim Profit and Loss Account (Unaudited)For six months period ended 30 June 2019
Net insurance premium 21
Net insurance claims 22
Net commission and other acquisition costs 23
Insurance claims and acquisition expenses
Management expenses
Net change in insurance liabilities
(other than outstanding claims)
Underwriting results
Investment income 24
Net fair value loss on financial assets at fair value
through profit or loss
Net unrealized gains on investment property
Rental income
Other income
Other expenses
Results of operating activities
Finance cost
Profit from 'Window Takaful Operations' 17
Profit before tax
Income tax expense
(Loss) / profit aster tax
(Loss) / profit attributable to:
Equity holders of the parent
Non-controlling interest
(Loss) / earnings (aster tax) per share 25
The annexed notes from 1 to 31 form an integral part of this consolidated condensed interim financial information.
6,570,287
(3,645,101)
(1,008,438)
(4,653,539)
(1,136,500)
729,640
1,509,888
363,005
(1,823,246)
-
1,611
86,144
(32,517)
104,885
(12,887)
31,425
123,423
(234,963)
(111,540)
(114,328)
2,788
(111,540)
(0.33)
6,537,261
(3,445,836)
(875,431)
(4,321,267)
(850,020)
(305,645)
1,060,329
1,084,282
(1,493,438)
-
2,515
50,301
(39,175)
664,814
-
24,471
689,285
(353,447)
335,838
348,978
(13,140)
335,838
Restated
1.00
12,832,970
(7,690,332)
(1,955,646)
(9,645,978)
(2,208,494)
(267,489)
711,009
1,765,985
(1,631,530)
21,000
3,189
174,041
(73,495)
970,199
(12,887)
57,859
1,015,171
(465,194)
549,977
528,369
21,608
549,977
1.51
12,168,397
(6,705,724)
(1,524,430)
(8,230,154)
(1,757,600)
(2,519,289)
(338,646)
2,554,059
(566,807)
47,019
5,030
89,144
(84,275)
1,705,524
-
44,281
1,749,805
(641,061)
1,108,744
1,093,718
15,026
1,108,744
Restated
3.13
Note
Restated Restated
30 June 2019 30 June 2018
For six months period ended30 June 2019 30 June 2018
Rupees in thousand
For three months period ended
Rupees
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
49ADAMJEE INSURANCE
50 SIX MONTHS REPORT
Consolidated Condensed Interim Statement of Comprehensive Income (Unaudited)For six months period ended 30 June 2019
(Loss) / profit aster tax
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Unrealized diminution on 'available for sale' - net of tax
Unrealized diminution on 'available for sale'
of window takaful operations - net of tax
Effect of currency translation of investment in foreign branches - net
Total comprehensive (loss) / income for the period
Total comprehensive (loss) / income attributable to:
Equity holders of the parent
Non-controlling interest
The annexed notes from 1 to 31 form an integral part of this consolidated condensed interim financial information.
(111,540)
(1,031,446)
(441)
164,279
(979,148)
(981,853)
2,705
(979,148)
335,838
(1,366,472)
(982)
28,315
(1,003,301)
(985,719)
(17,582)
(1,003,301)
549,977
(891,932)
(18)
172,616
(169,357)
(191,370)
22,013
(169,357)
1,108,744
(582,277)
(442)
50,708
576,733
562,449
14,284
576,733
RestatedRestated
30 June 2019 30 June 2018
For six months period ended30 June 2019 30 June 2018
Rupees in thousand
For three months period ended
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
Consolidated Condensed Interim Cash Flow Statement (Unaudited)For six months period ended 30 June 2019
Cash flows from operating activities
Underwriting activities
Insurance premium received 15,826,241
Reinsurance premiums paid (3,155,277)
Claims paid (10,346,900)
Surrenders paid (29,961)
Reinsurance and other recoveries received 3,485,396
Commissions paid (1,790,505)
Commissions received 257,857
Other underwriting payments (1,468,423)
Net cash flow from underwriting activities 2,778,428
Other operating activities
Income tax paid (569,080)
Other operating payments (737,333)
Loans advanced (30,356)
Loans repayments received 26,882
Other operating receipts 10,513
Net cash used in other operating activities (1,299,374)
Total cash flow from all operating activities 1,479,054
Cash flows from investing activities
Profit / return received on bank deposits 612,314
Income from treasury bills 20,050
Dividends received 925,201
Rentals received 6,380
Payment for investments/ investment properties (50,525,513)
Loan to / from policy holder 69
Proceds from investments/ investment properties 50,062,098
Fixed capital expenditure - operating fixed assets (457,046)
Fixed capital expenditure - intangible assets (2,468)
Proceeds from disposal of operating fixed assets 16,466
Total cash flow from investing activities 657,551
Cash flows from financing activities
Payments against lease liabilities -
Dividends paid (315,785)
Total cash used in financing activities (315,785)
Net cash flow from all activities 1,820,820
Cash and cash equivalents at beginning of period 12,740,248
Cash and cash equivalents at end of period
16,590,784
(3,367,443)
(10,683,986)
(37,034)
2,492,697
(2,334,625)
262,247
(1,439,066)
1,483,574
(186,780)
(750,687)
(35,185)
27,751
22,895
(922,006)
561,568
1,047,087
16,428
1,040,693
2,431
(107,834,741)
(3,665)
106,287,799
(522,431)
-
16,704
50,305
(46,506)
(518,283)
(564,789)
47,084
16,543,097
16,590,181 14,561,068
30 June 2019
Rupees in thousand
30 June 2018
For six months period ended
Restated
51ADAMJEE INSURANCE
52 SIX MONTHS REPORT
Consolidated Condensed Interim Cash Flow Statement (Unaudited)For six months period ended 30 June 2019
Reconciliation to profit and loss account
Operating cash flows 561,568 1,479,055
Depreciation expense (168,678) (92,930)
Provision for gratuity (23,314) (16,029)
Finance cost (12,887) -
Other income - bank and term deposits 90,575 64,870
(Loss) / gain on disposal of operating fixed assets (3,955) 7,493
Provision for doubtful balances (97,352) -
Rental income 3,189 5,030
Decrease in assets other than cash 2,337,598 105,777
Increase in liabilities other than running finance (670,955) (1,581,032)
Increase in tax liabilities (421,503) (641,692)
Profit on sale of investments 284,626 1,260,749
Amortization expense (11,436) (7,881)
Increase in unearned premium (1,465,113) (838,962)
Decrease in loans and other receivables 7,435 3,474
Income taxes paid 142,392 495,905
Provision for impairment in value of 'available-for-sale' investments (490,685) (71,686)
Dividend and other income 407,128 1,355,779
Income from treasury bills 21,910 12,767
Income from TFCs - 2,716
Revaluation / devaluation of investment 1,575 (478,940)
Profit from liabilities Window Takaful Operations 57,859 44,281
Profit aster tax 549,977 1,108,744
Cash for the purposes of the cash flows statement consists of:
Cash and other equivalents 10,856 12,919
Current and other accounts 8,611,325 3,178,293
Term deposits 7,968,000 11,369,856
Total cash and cash equivalents 16,590,181 14,561,068
The annexed notes from 1 to 31 form an integral part of this consolidated condensed interim financial information.
30 June 2019
Rupees in thousand
30 June 2018
For six months period ended
Restated
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
Consolidated Condensed Interim Statement of Changes in Equity (Unaudited)For six months period ended 30 June 2019
Balance as at 31 December 2017 - (Audited)
Profit for the period 01 January 2018 to 30 June 2018
Other comprehensive income for the period 01 January 2018 to 30 June 2018
Total comprehensive income for the period
Transactions with owners of the Company
Final dividend for the year ended 31 December 2017 @ 10% (Rupee 1/- per share)
Balance as at 30 June 2018 - (Unaudited) - Restated
Profit for the period 01 July 2018 to 31 December 2018
Other comprehensive income for the period 01 July 2018 to 31 December 2018
Total comprehensive income for the period
Transactions with owners of the Company
Interim dividend for the year ended 30 June 2018 @ 10% (Rupee 1/- per share)
Balance as at 31 December 2018 - (Audited)
Profit for the period 01 January 2019 to 30 June 2019
Other comprehensive income for the period 01 January 2019 to 30 June 2019
Total comprehensive income for the period
Transactions with owners of the Company
Final dividend for the year ended 31 December 2018 @ 15% (Rupees 1.5/- per share)
Balance as at 30 June 2019 - (Unaudited)
3,500,000
-
-
-
-
3,500,000
-
-
-
-
3,500,000
-
-
-
-
3,500,000
22,859
-
-
-
-
22,859
-
-
-
-
22,859
-
-
-
-
22,859
3,764
-
-
-
-
3,764
-
-
-
-
3,764
-
-
-
-
3,764
467,100
-
50,708
50,708
-
517,808
-
96,254
96,254
-
614,062
-
172,616
172,616
-
786,678
3,573,724
-
(581,977)
(581,977)
-
2,991,747
-
(787,650)
(787,650)
-
2,204,097
-
(892,355)
(892,355)
-
1,311,742
936,500
-
-
-
-
936,500
-
-
-
-
936,500
-
-
-
-
936,500
11,955,927
1,093,718
-
1,093,718
(350,000)
12,699,645
186,944
(15,317)
171,627
(350,000)
12,521,272
528,369
-
528,369
(525,000)
12,524,641
20,459,874
1,093,718
(531,269)
562,449
(350,000)
20,672,323
186,944
(706,713)
(519,769)
(350,000)
19,802,554
528,369
(719,739)
(191,370)
(525,000)
19,086,184
273,635
15,026
(742)
14,284
-
287,919
(600)
1,478
878
-
288,797
21,608
405
22,013
-
310,810
20,733,509
1,108,744
(532,011)
576,733
(350,000)
20,960,242
186,344
(705,235)
(518,891)
(350,000)
20,091,351
549,977
(719,334)
(169,357)
(525,000)
19,396,994
The annexed notes from 1 to 31 form an integral part of this consolidated condensed interim financial information.
Rupees in thousand
Capital reserveShare capital Revenue reserve
Issued,subscribed and paid up
Reserve for exceptional
losses
Investment fluctuation
reserve
Exchange translation
reserve
General reserve
Fair Value Reserve
Retained earnings
Total
Equity attributable to equity holders of the parent
Non-controlling interest
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
53ADAMJEE INSURANCE
54 SIX MONTHS REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)
1 The group and its operations:
1.1 The group comprises of:
2019 2018 (Holding percentage)
Holding Company Adamjee Insurance Company Limited 100% 100%
Subsidiary Company Adamjee Life Assurance Company Limited 74.28% 74.28%
Adamjee Insurance Company Limited (Holding Company)
Adamjee Insurance Company Limited is a public limited company incorporated in Pakistan on 28 September 1960 under the Companies Act, 1913 (now the Companies Act, 2017). The Holding Company is listed on Pakistan Stock Exchange and is engaged in the general insurance business. The registered office of the Holding Company is situated at Tanveer Building, 27-C-III, MM Alam Road, Gulberg III, Lahore.
The Holding Company also operates branches in the United Arab Emirates (UAE) and the Export Processing Zone (EPZ).
The Holding Company was granted authorization on 23 December 2015 under Rule 6 of the Takaful Rules, 2012 to undertake Window Takaful Operations in respect of general takaful products by Securities and Exchange Commission of Pakistan (SECP) and commenced Window Takaful Operations on 01 January 2016.
Adamjee Life Assurance Company Limited (Subsidiary Company)
Adamjee Life Assurance Company Limited was incorporated in Pakistan on 4 August 2008 as a public unlisted company under the Companies Act, 2017. The Subsidiary Company started its operations from 24 April 2009. Registered office of the Subsidiary Company is at 1st floor, Islamabad Stock Exchange Towers, 55-B, Jinnah Avenue, Blue Area, Islamabad while its principal place of business is at 3rd Floor, The Forum, Khayaban-e-Jami, Clifton, Karachi. Adamjee Life Assurance Company Limited is a subsidiary of Adamjee Insurance Company Limited and an associate of IVM Intersurer B.V, each having a holding of 74.28% and 25.72% (2018: 74.28% and 25.72%) respectively in the share capital of the Subsidiary Company. IVM Intersurer B.V. has nominated Hollard Life Assurance Company Limited ("HLA"), an associate company of IVM Intersurer B.V. to act on its behalf in respect of matters relating to the Subsidiary Company. HLA is South Africa's largest private sector insurance company.
The Subsidiary Company is engaged in life assurance business carrying on non-participating business only. In accordance with the requirements of the Insurance Ordinance, 2000, the Subsidiary Company has established a shareholders' fund and the following statutory funds in respect of each class of its life assurance business:
- Conventional Business - Accident and Health Business - Individual Life Non-unitized Investment Linked Business - Individual Life Unit Linked Business - Individual Family Takaful Business
The Subsidiary Company was granted authorization on 4 May 2016 under Rule 6 of Takaful Rules, 2012 to undertake Takaful Window Operations in respect of family takaful products by the Securities and Exchange Commission of Pakistan (SECP) and subsequently the Subsidiary Company commenced Window Takaful Operations from 14 July 2016. The Subsidiary Company formed a Waqf Fund namely the Adamjee Life Assurance Company Limited - Window Takaful Operations Waqf Fund (here-in-after referred to as the Participant Takaful Fund (PTF)) on 22 December 2015 under a Waqf deed executed by the Subsidiary Company with the cede amount of Rs. 500,000. The cede money is required to be invested in Shariah compliant investments and any profit thereon can be utilized only to pay benefits to participants or defray PTF expenses. Waqf deed also governs the relationship of the Subsidiary Company and policyholders for the management of Takaful operations, investment of policyholders' funds and shareholders' funds as approved by the Shariah Advisor appointed by the Subsidiary Company.
IVM Intersurer B.V is in the process of selling its holding in the Subsidiary company to Holding Company after relevant legal formalities.
For six months period ended 30 June 2019
2 Basis of preparation and statement of compliance
This consolidated condensed interim financial information of the Group for the period ended 30 June 2019 has been prepared in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards comprise of:
- International Accounting Standard 34 - "Interim Financial Reporting", issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and
- Provision of and directives issued under the Companies Act, 2017 and the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012.
Where the provisions of and directives issued under the Companies Act, 2017 differ, the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012 have been followed.
In terms of the requirements of the Takaful Rules, 2012, read with SECP Circular 25 of 2015 dated 09 July 2015, the assets, liabilities and profit and loss of the Operator Fund of the Window Takaful operations of the Holding Company have been presented as a single line item in the statement of financial position and profit and loss account of the Holding Company respectively. A separate set of condensed interim financial information of the Window Takaful operations has been annexed to this financial information as per the requirements of the Takaful Rules, 2012.
This consolidated condensed interim financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with annual financial statements of the Group for the year ended 31 December 2018. Comparative figures for consolidated condensed interim statement of financial position are stated from annual audited financial statements of the Group for the year ended 31 December 2018, whereas comparatives for interim profit and loss account, interim statement of comprehensive income, interim statement of changes in equity and interim cash flow statement and related notes are extracted from consolidated condensed interim financial information of the Group for the six months ended 30 June 2018.
This consolidated condensed interim financial information is unaudited and being submitted to the shareholders as required under Section 237 of the Companies Act, 2017 and the listing regulations of Pakistan Stock Exchange Limited.
3 Basis of measurement
This consolidated condensed interim financial information has been prepared under historical cost convention except for certain foreign currency translation adjustments, certain financial instruments carried at fair value, and defined benefit obligations under employee benefits carried at present value. All transactions reflected in this financial information are on accrual basis except for those reflected in cash flow statement.
4 Accounting policies
The accounting policies and the methods of computation adopted in the preparation of the consolidated condensed interim financial information are same as those applied in the preparation of annual audited financial statements for the year ended 31 December 2018.
4.1 Standards, amendments or interpretations
The new and revised relevant IFRSs effective in the current period had no significant impact on the amounts reported and disclosures in these condensed interim financial information except the following:
IFRS 16
The Group has adopted IFRS 16 'Leases', issued in January 2016, with the date of initial application on 01 January 2019. IFRS 16 introduces significant changes to lessee accounting. It removes the distinction between operating and finance leases under IAS 17 and requires a lessee to recognize a right-of-use asset and a lease liability at lease commencement for all leases, except for short term leases and leases of low value assets.
Lease Accounting
The Group initially measures the right-of-use asset at cost (present value of the future lease payments discounted using the
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
55ADAMJEE INSURANCE
56 SIX MONTHS REPORT
discount rate implicit in the lease and initial cost) and subsequently measured at cost less accumulated depreciation and impairment losses adjusted for any remeasurement of the lease liability.
The Group initially measures the lease liability at the present value of the future lease payments discounted using the discount rate implicit in the lease. Subsequently, the lease liability is adjusted for interest and lease payments, as well as the impact of lease modifications, amongst others.
The Group has elected to apply the expedient allowed by IFRS 16 on its general requirements to short-term leases (i.e. one that does not include a purchase option and has a lease term at commencement date of 12 months or less) and leases of low value assets. The Group recognizes the lease payments associated with those leases as an expense on a straight-line basis over the lease term or another systematic basis if that basis is representative of the pattern of the lessee's benefits, similar to the current accounting for operating leases.
The Group has applied IFRS 16 using the modified retrospective approach and therefore the comparative information has not been restated. The Group has assessed that the impact of IFRS 16 is not material on opening retained earnings and as of reporting date has presented right-of-use assets within 'Property and equipment' and 'Finance lease liabilities' in the condensed interim statement of financial position.
Impacts on condensed interim financial information
As a result of initially applying IFRS 16, in relation to the leases that were previously classified as operating leases, the Group has recognized Rs. 295.23 million of right-of-use assets (included in property and equipment) and Rs. 289.20 million of lease liabilities as at 30 June 2019.
Also, in relation to those leases under IFRS 16, the Group has recognized depreciation and interest costs, instead of operating lease expense. During the six months period ended 30 June 2019, the Group recognized Rs. 60.69 million as depreciation expense and Rs. 8.99 million as interest cost.
IFRS 9
The amendments introduce two approaches for entities that apply IFRS 4 to reduce the impact of deferring effective dates with IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments: an overlay approach and a temporary exemption from applying IFRS 9. The Group has adopted for a temporary exemption from application of IFRS 9.
The effective date of the amendments permitting the temporary exemption is for annual periods beginning on or after 01 January 2018. The temporary exemption is available for annual reporting periods beginning before 01 January 2022 and will expire once IFRS 17 becomes effective.
5 Use of estimates and judgments
The preparation of this consolidated condensed interim financial information in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Group's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
During preparation of this consolidated condensed interim financial information, the significant judgments made by the management in applying the Group's accounting policies and the key sources of estimation and uncertainty were the same as those that applied in the preceding audited annual published financial statements of the Group for the year ended 31 December 2018.
6 Functional and presentation currency
This consolidated condensed interim financial information is presented in Pakistani Rupees, which is also the Group’s functional currency.
7 Insurance and Financial risk management
The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated annual financial statements for the year ended 31 December 2018.
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
8 Property and equipment
Opening balance - net book value
Additions during the period / year 8.1
Right -of- use assets -
Less:
Book value of disposals during the period / year 8.2
Depreciation charged during the period / year
Exchange gain
Capital work in progress
8.1 Additions during the period / year - cost
Buildings
Furniture and fixtures
Motor vehicles
Machinery and equipment
Computer and related accessories
Leasehold Improvements
8.2 Written down values of property and equipment
disposed off during the period / year
Furniture and fixtures
Motor vehicles
Machinery and equipment
Computer and related accessories -
9 Intangible assets
Opening balance - net book value
Additions during the year -
Less:
Amortization charged during the period / year
Exchange gain
(20,658)
(156,205)
(119,175)
(23,907)
(16,806)
(18,654)
(173,636)
(140,247)
(41,126)
(32,485)
2,273,084
348,751
52,043
2,481,588
1,192,216
3,673,804
170,852
38,889
70,594
6,171
59,474
2,771
348,751
39
18,060
371
184
18,654
97,760
95,327
8,641
160,602
2,481,588
71,811
355,923
57,688
2,790,147
1,642,836
4,432,983
467
4,779
53,937
6,332
3,543
2,753
71,811
10,398
5,990
4,270
20,658
160,602
7,101
143,796
(Unaudited) (Audited)
30 June 2019
Rupees in thousand
31 December 2018Note
57ADAMJEE INSURANCE
58 SIX MONTHS REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
Investment in equity securities
Fair value through profit and loss
Total - fair value through profit and loss
8,859,290
550,726
9,410,016
6,900,463
925,360
161
440,724
8,266,708
17,676,724
1,634,941
4,182,896
5,817,837
10,014,321
847,371
10,861,692
16,679,529
34,356,253
(261,128)
-
(261,128)
(1,939,947)
-
-
-
(1,939,947)
(2,201,075)
-
-
-
-
-
-
-
(2,201,075)
8,598,162
550,726
9,148,888
972,487
10,121,375
4,960,516
925,360
161
440,724
6,326,761
878,122
7,204,883
17,326,258
1,634,941
4,182,896
5,817,837
(271,627)
5,546,210
10,014,321
847,371
10,861,692
(3,707,094)
7,154,598
12,700,808
30,027,066
8,423,580
300,726
8,724,306
7,268,843
925,360
161
389,312
8,583,676
17,307,982
1,250,208
3,651,823
4,902,031
10,864,063
286,805
11,150,868
16,052,899
33,360,881
(164,863)
-
(164,863)
(1,545,527)
-
-
-
(1,545,527)
(1,710,390)
-
-
-
-
-
-
-
(1,710,390)
8,258,717
300,726
8,559,443
1,294,754
9,854,197
5,723,316
925,360
161
389,312
7,038,149
1,813,201
8,851,350
18,705,547
1,250,208
3,651,823
4,902,031
(374,786)
4,527,245
10,864,063
286,805
11,150,868
(2,024,252)
9,126,616
13,653,861
32,359,408
Rupees in thousand
31 December 2018 (Audited)
CostImpairment/
provisionCarrying value
30 June 2019 (Unadited)
CostImpairment/
provisionCarrying value
10
Available-for-sale
Related parties
Listed shares
Unlisted shares
Unrealized gain
Others
Listed shares
Unlisted shared
NIT Units
Mutual Funds
Unrealized gain
Total - available for sale
Related parties
Listed shares
Mutual Funds
Unrealized loss
Others
Listed shares
Mutual Funds
Unrealized loss
Grand Total
59ADAMJEE INSURANCE
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
(Unaudited) (Audited)
30 June 2019
Rupees in thousand
31 December 2018Note
11 Investments in debt securities
Held to maturity
Treasury Bills 381,663 378,029
381,663 378,029
Available for sale
Treasury Bills 261,952 189,911
Pakistan Investment Bonds 179,447 244,884
441,399 434,795
Deficit on revaluation (2,451) (7,535)
438,948 427,260
Fair value through profit and loss
Term Finance Certificate 1,508,730 1,441,778
Advance against purchase of term finance certificate - 350,000
Corporate sukuks 1,516,143 1,032,170
Ijarah sukuks - 32,053
Treasury Bills 457,673 411,254
Pakistan Investment Bonds 50,464 352,204
3,533,010 3,619,459
Deficit on revaluation (918) (7,944)
3,532,092 3,611,515
4,352,703 4,416,804
12 Investments in Term Deposits
Held to maturity
Deposits maturing within 12 months
Inside Pakistan
- related parties 26,811 366,811
- others 7,974,447 10,735,066
8,001,258 11,101,877Outside Pakistan
- related parties 1,307,205 871,396
- others 4,527,894 3,411,149
5,835,099 4,282,545
Deposits maturing aster 12 months 13,836,357 15,384,422
Inside Pakistan
- related parties 2,000 2,000
- others 39,691 39,691
41,691 41,691
Outside Pakistan
- related parties - -
- others - -
- -
41,691 41,691
12.1 13,878,048 15,426,113
12.1 These include fixed deposits amounting to Rs. 5,010,953 thousands (AED 115,000 thousands) [2018: Rs. 3,780,460 thousands (AED 100,000 thousands)] kept in accordance with the requirements of Insurance Regulations applicable to the UAE branches of the Holding Company for the purpose of carrying on business in United Arab Emirates. These also include liens against cash deposits of Rs. 74,949 thousands (2018: Rs. 73,568 thousands) with banks in Pakistan essentially in respect of guarantees issued by the banks on behalf of the Holding Company for claims under litigation filed against the Holding Company and bid bond guarantees.
60 SIX MONTHS REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
13 Loans and other receivables - considered good
Rent receivable 5,726 4,968
Receivable from related parties 802 2,500
Accrued investment income 216,815 205,130
Security deposits 86,598 79,222
Advances to employees and suppliers 111,239 70,835
Agent commission receivable 2,088 24,085
Loans to employees 61,201 55,724
Receivable against the sale of investment 152,859 98,754
Other receivables 45,059 10,852
682,387 552,070
14 Insurance / reinsurance receivables - unsecured and considered good
Due from insurance contract holders 8,085,440 6,854,237
Provision for impairment of receivables from
insurance contract holders (798,249) (629,668)
7,287,191 6,224,569
Due from other insurers / other reinsurers 1,157,638 1,138,810
Provision for impairment of due from other
insurers / reinsurers (201,302) (201,302)
956,336 937,508
8,243,527 7,162,077
15 Prepayments
Prepaid reinsurance premium ceded 3,543,053 2,866,980
Prepaid rent 22,698 56,540
Prepaid miscellaneous expenses 249,510 192,935
3,815,261 3,116,455
16 Cash and bank
Cash and cash equivalents
Inside Pakistan
Cash in hand 1,023 693
Policy & Revenue stamps, Bond papers 9,178 15,713
10,201 16,406
Outside Pakistan
Cash in hand 655 -
10,856 16,406
Cash at bank
Inside Pakistan 16.1
Current accounts 413,491 929,837
Savings accounts 7,534,841 3,518,450
7,948,332 4,448,287
Outside Pakistan
Current accounts 657,299 1,053,464
Savings accounts 5,694 4,940
662,993 1,058,404
8,611,325 5,506,691
8,622,181 5,523,097
(Unaudited) (Audited)
30 June 2019
Rupees in thousand
31 December 2018Note
16.1 Cash at bank includes an amount of Rs. 1,491,592 thousands (31 December 2018: Rs. 2,203,566 thousands) held with MCB Bank Limited, a related party of the Group.
62 SIX MONTHS REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
20 Contingencies and commitments
Holding Company
Contingencies and commitments
There has been no significant change in the contingencies and commitments since the date of preceding published annual financial statements of the Holding Company for the year ended 31 December 2018.
Subsidiary Company
This represents various cases initiated against the Subsidiary Company concerning policyholder claims referred to Court, Federal Insurance Mohtasib and Small Dispute Resolution Committee rejected by the Subsidiary Company on different grounds. However, the management believes that no significant liability is likely to occur in these cases.
Sales tax imposed on premium from life insurance business was exempt up to 30 June 2018. However further exemption on this had not been given and the matter was also raised with Sindh Revenue Board (SRB). The matter for the renewal of the exemption was taken up at the collective level of the Insurance Association of Pakistan with the SRB through its consultants. The discussions on the matter has been conducive and the management is hopeful based on the consultant’s positive feedback, that it will be concluded in favor of the industry. Representation from the SECP Commissioner level has also been made to Chairman, Sindh Board of Revenue, to help enable a favorable outcome. In view of the fact that the matter is still under the process of review, the Subsidiary Company and other life insurance companies carrying out life insurance business have not yet billed their customers for SST for the period from 01 July 2018 to 30 June 2019 on premium from life insurance coverage.
There is also an ambiguity in the Sind Sales Tax on Services Act , 2011 and the Rules framed there under about whether the sales tax is intended to be charged on total gross premium or on the premium charged on the actual risk covered.
The aggregate amount of sales tax not yet billed based on the total gross amount of premium collected during the period from July 1, 2018 to June 30, 2019 is Rs. 952 million whereas sales tax not yet billed based on premium charged only on risk covered (in the shape of mortality charges) during the same period works out to Rs. 99 million.
Commitments
Commitments in respect of ljarah rentals payable in future period as at June 30, 2019 amounted to Rs. 60.49 million (Dec 31, 2018: Rs. 40.61 million) for vehicles.
Contingencies
Claims against the Subsidiary Company not acknowledged as debt 25,186 26,014
Number of cases 44 43
(Unaudited) (Audited)
30 June 2019
Rupees in thousand
31 December 2018
Not later than one year 16,505 12,071
Later than one year and not later than five years 43,986 28,542
60,491 40,613
(Unaudited) (Audited)
30 June 2019
Rupees in thousand
31 December 2018
63ADAMJEE INSURANCE
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
21 Net insurance premium
Holding Company
Written gross premium
Unearned premium reserve opening
Unearned premium reserve closing
Currency translation effect
Premium earned
Reinsurance premium ceded
Prepaid reinsurance premium opening
Prepaid reinsurance premium closing
Currency translation effect
Reinsurance expense
21.1 & 21.2
Subsidiary Company
Regular premium / contributions
individual policies 21.3- first year
- second year renewal
- subsequent years renewal
Single premium / contributions
individual policies 21.3Group policies without cash values
Less: reinsurance premiums /
retakaful contributions ceded
On individual life first year business
On individual life second year business
On individual life subsequent
renewal business
On single premium individual policies
On group policies
21.1 Net insurance premium - Business underwritten inside Pakistan
Written gross premium
Unearned premium reserve opening
Unearned premium reserve closing
Premium earned
Reinsurance premium ceded
Prepaid reinsurance premium opening
Prepaid reinsurance premium closing
Reinsurance expense
5,954,000
8,136,283
205,164
4,543,987
2,648,778
3,233,557
1,323,223
3,365,826
-
3,303,704
6,537,261
4,189,933
4,740,133
2,946,201
2,622,522
(9,751,460)
(2,194,005)
(1,759,176)
(6,027)
(1,310,430)
603,882
395,368
959,667
83,686
(8,630)
(13,154)
(24,700)
(15,638)
(62,122)
(5,983,865)
(2,112,473)
(1,705,069)
(1,195,020)
1,751,181
30 June 2019 30 June 2018
For six months period ended30 June 2019 30 June 2018
Rupees in thousand
For three months period endedNote
9,648,166
8,912,498
354,680
9,163,884
2,648,778
6,380,752
1,159,137
867,629
1,663,319
2,049,620
243,566
5,983,271
-
5,787,645
12,168,397
6,696,459
5,186,518
5,899,112
2,622,522
3,508,781
(9,751,460)
(3,071,924)
(2,349,147)
(10,839)
(2,783,132)
(20,467)
(24,531)
(44,630)
(105,998)
(195,626)
(5,983,865)
(2,932,933)
(2,079,920)
(2,390,331)
-
12,129,819
10,100,901
671,251
11,335,957
3,543,053
7,702,132
1,546,577
951,288
2,119,718
506,186
247,468
5,371,237
5,130,838
12,832,970
8,129,229
5,508,453
7,086,987
3,480,705
3,541,069
(11,566,014)
(4,302,427)
(2,866,980)
(7,471)
(3,633,825)
(23,382)
(28,387)
(70,267)
(118,363)
(240,399)
(6,550,695)
(4,187,650)
(2,838,973)
(3,545,918)
-
5,873,553
10,802,642
606,309
5,716,490
3,543,053
3,946,935
814,841
472,941
1,132,601
196,796
106,102
2,723,281
2,623,352
6,570,287
4,009,414
6,030,336
3,489,055
3,480,705
1,747,879
(11,566,014)
(2,051,234)
(3,254,355)
(7,019)
(1,769,555)
(14,909)
(12,112)
(40,599)
(32,309)
(99,929)
(6,550,695)
(2,000,953)
(3,220,928)
(1,741,176)
Restated Restated
64 SIX MONTHS REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
Restated Restated
30 June 2019 30 June 2018
For six months period ended30 June 2019 30 June 2018
Rupees in thousand
For three months period endedNote
21.2 Net insurance premium - Business underwritten outside Pakistan
Written gross premiumUnearned premium reserve openingUnearned premium reserve closingCurrency translation effect
Premium earned
Reinsurance premium cededPrepaid reinsurance premium openingPrepaid reinsurance premium closingCurrency translation effect
Reinsurance expense
1,864,1394,772,306
(5,015,319)606,309
2,227,435
(50,281)(33,427)62,348(7,019)
(28,379)
2,199,056
1,764,0673,396,150
(3,767,595)205,164
1,597,786
(81,532)(54,107)26,256(6,027)
(115,410)
1,482,376
4,000,5904,592,448
(5,015,319)671,251
4,248,970
(114,777)(28,007)62,348(7,471)
(87,907)
4,161,063
2,951,7073,725,980
(3,767,595)354,680
3,264,772
(138,991)(269,227)
26,256(10,839)
(392,801)
2,871,971
21.3 Individual policies are those underwritten on an individual basis.
22.1 & 22.2
3,489,49410,669,875
(10,193,465)(727,786)
3,238,118
(1,110,205)
(6,227,154)
6,178,315378,020
(781,024)
2,457,094
60,051(800)
90,9621,054,951
1,205,164
76,230(6,500)
827
70,557
1,919
1,277,640
36,08653,547
89,633
1,188,007
4,421,19710,636,120
(11,426,866)(253,776)
3,376,675
(2,565,556)
(6,844,083)
7,917,116136,155
(1,356,368)
2,020,307
17,671900
280,9811,087,326
1,386,878
118,52217,832
-
136,354
3,285
1,526,517
798100,190
100,988
1,425,529
7,207,71510,669,875
(10,461,975)(800,778)
6,614,837
(2,467,176)
(6,227,154)
6,397,245417,133
(1,879,952)
4,734,885
133,4756,275
423,5232,338,202
2,901,475
232,824(22,671)10,492
220,645
3,885
3,126,005
20,122150,436
170,558
2,955,447
7,228,62710,636,120
(11,485,744)(454,985)
5,924,018
(3,554,402)
(6,844,083)
8,056,450249,501
(2,092,534)
3,831,484
124,289900
547,8352,123,993
2,797,017
256,06525,301
4,291
285,657
6,414
3,089,088
36,057178,791
214,848
2,874,240
22 Net insurance claims expense
Holding Company
Claims paidOutstanding claims including IBNR closingOutstanding claims including IBNR openingCurrency translation effect
Claims expense
Reinsurance and other recoveries receivedReinsurance and other recoveries in respect of outstanding claims closingReinsurance and other recoveries in respect of outstanding claims openingCurrency translation effect
Reinsurance and other recoveries revenue
Subsidiary Company
Gross claimsClaims under individual policies - by death - by insured event other than death - by maturity - by surrender
Total gross individual policy claims
Claims under group policies - by death - by insured event other than death - experience refund
Total gross group policy claims
Claim investigation fees
Total gross claims
Less: Reinsurance recoveries - on individual claims - on group claims
3,645,101 3,445,836 7,690,332 6,705,724
65ADAMJEE INSURANCE
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
Net insurance claims expense - Business underwritten inside Pakistan
1,441,677
4,572,871
(4,823,914)
1,190,634
(468,627)
(3,046,533)
3,295,122
(220,038)
970,596
2,738,453
5,586,679
(6,630,290)
1,694,842
(1,902,964)
(4,097,999)
5,205,590
(795,373)
899,469
3,472,180
4,572,871
(5,386,215)
2,658,836
(1,477,221)
(3,046,533)
3,769,658
(754,096)
1,904,740
4,169,425
5,586,679
(7,084,282)
2,671,822
(2,413,220)
(4,097,999)
5,602,812
(908,407)
1,763,415
22.1
Claim paid
Outstanding claims including IBNR closing
Outstanding claims including IBNR opening
Claim expense
Reinsurance and other recoveries received
Reinsurance and other recoveries in respect
of outstanding claims closing
Reinsurance and other recoveries in respect
of outstanding claims opening
Reinsurance and other recoveries revenue
Restated Restated
30 June 2019 30 June 2018
For six months period ended30 June 2019 30 June 2018
Rupees in thousand
For three months period endedNote
Claim expense
Reinsurance and other recoveries received
Reinsurance and other recoveries in respect
of outstanding claims closing
Reinsurance and other recoveries in respect
of outstanding claims opening
Currency translation effect
Reinsurance and other recoveries revenue
Net insurance claims expense - Business underwritten outside Pakistan
2,047,484
(641,578)
(3,180,621)
2,883,193
378,020
(560,986)
1,486,498
2,047,817
6,097,004
(5,369,551)
(727,786)
1,681,833
(662,592)
(2,746,084)
2,711,526
136,155
(560,995)
1,120,838
1,682,744
5,049,441
(4,796,576)
(253,776)
3,956,001
(989,955)
(3,180,621)
2,627,587
417,133
(1,125,856)
2,830,145
3,735,535
6,097,004
(5,075,760)
(800,778)
3,252,196
(1,141,182)
(2,746,084)
2,453,638
249,501
(1,184,127)
2,068,069
3,059,202
5,049,441
(4,401,462)
(454,985)
22.2
Claim Paid
Outstanding claims including IBNR closing
Outstanding claims including IBNR opening
Currency translation effect
66 SIX MONTHS REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
Restated Restated
30 June 2019 30 June 2018
For six months period ended30 June 2019 30 June 2018
Rupees in thousand
For three months period endedNote
Net commission and other acquisition costs
Holding Company
Commission paid or payable
Deferred commission expense opening
Deferred commission expense closing
Currency translation effect
Net commission
Commission received or recoverable
Unearned reinsurance commission opening
Unearned reinsurance commission closing
Currency translation effect
Commission from reinsurance
23.1 & 23.2
Subsidiary Company
Remuneration to insurance / takaful
intermediaries on individual policies:
- Commission on first year contribution / premium
- Commission on second year contribution / premium
- Commission on subsequent years renewal contribution / premium
- Commission on single contribution / premium
- Other benefits to insurance intermediaries
Remuneration to insurance intermediaries
on group policies:
- Commission
- Other benefits to insurance intermediaries
Other acquisition costs
23.1 Net commission and other acquisition costs - Business underwritten inside Pakistan
Commission paid or payable
Deferred commission expense opening
Deferred commission expense closing
Net commission
Commission received or recoverable
Unearned reinsurance commission opening
Unearned reinsurance commission closing
Commission from reinsurance
742,775
799,779
(1,075,282)
77,457
544,729
(173,192)
(195,759)
237,103
(603)
(132,451)
412,278
355,476
29,615
30,725
4,691
79,491
499,998
7,454
1,215
8,669
87,493
596,160
1,008,438
384,847
264,800
(417,247)
232,400
(171,507)
(191,511)
231,646
(131,372)
101,028
664,386
614,722
(855,030)
21,072
445,150
(167,526)
(195,862)
242,026
(294)
(121,656)
323,494
271,229
20,713
21,870
26,418
138,142
478,372
9,362
3,904
13,266
60,299
551,937
875,431
480,235
254,852
(471,649)
263,438
(165,838)
(188,720)
238,193
(116,365)
147,073
1,231,140
788,431
(1,075,282)
84,718
1,029,007
(262,247)
(221,371)
237,103
(661)
(247,176)
781,831
695,630
56,353
55,175
11,168
158,182
976,508
17,652
2,673
20,325
176,982
1,173,815
1,955,646
578,880
297,403
(417,247)
459,036
(257,151)
(218,690)
231,646
(244,195)
214,841
943,783
733,631
(855,030)
37,059
859,443
(257,857)
(240,306)
242,026
(665)
(256,802)
602,641
522,676
45,311
38,190
42,978
137,562
786,717
16,046
3,904
19,950
115,122
921,789
1,524,430
633,748
326,325
(471,649)
488,424
(254,023)
(227,726)
238,193
(243,556)
244,868
23
67ADAMJEE INSURANCE
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
Restated Restated
30 June 2019 30 June 2018
For six months period ended30 June 2019 30 June 2018
Rupees in thousand
For three months period endedNote
23.2 Net commission and other acquisition costs - Business underwritten outside Pakistan
Commission paid or payable
Deferred commission expense opening
Deferred commission expense closing
Currency translation effect
Commission received or recoverable
Unearned reinsurance commission opening
Unearned reinsurance commission closing
Currency translation effect
Commission from reinsurance
Net commission
357,928
534,979
(658,035)
77,457
312,329
310,035
407,306
(383,381)
37,059
371,019
(1,685)
(4,248)
5,457
(603)
(1,079)
311,250
184,151
359,870
(383,381)
21,072
181,712
(1,688)
(7,142)
3,833
(294)
(5,291)
176,421
652,260
491,028
(658,035)
84,718
569,971
(5,096)
(2,681)
5,457
(661)
(2,981)
566,990
(3,834)
(12,580)
3,833
(665)
(13,246)
357,773
Business underwritten Inside Pakistan
Income from equity securities
Available for sale
- associated undertakings
Listed equity shares
Income from debt securities
Return on Term Finance Certificates
Return on Pakistan Investment Bonds
Return on government securities
Profit on Treasury Bills
Fair value through profit & loss
Return on government securities
Return on other fixed income securities
Available for sale
Return on government securities
Income from term deposits
24 Investment income
24.1
24.1.1
Dividend income
- others
Held for trading
24.1.2
Held to maturity
24.1.3
Held to maturity
-
382,619
269,610
652,229
130,178
2,716
-
235,261
12,767
250,744
75,714
75,714
11,572
338,030
214,500
191,175
134,936
326,111
1128,775
-
-
182,492
11,620
194,112
-
89,073
89,073
1,853
285,038
147,930
454,886
191,508
86,891
278,399
45,093
1,365
-
99,786
5,940
107,091
-
44,559
44,559
7,595
159,245
123,407
323,492
-
382,618
361,809
744,427
248,627
-
-
322,957
21,910
344,867
171,169
171,169
10,903
526,939
349,465
993,054 782,047
68 SIX MONTHS REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
Restated Restated
30 June 2019 30 June 2018
For six months period ended30 June 2019 30 June 2018
Rupees in thousand
For three months period endedNote
Business underwritten Outside Pakistan
Income from equity securities
Available for sale
- associated undertakings
24.2
24.2.1
Dividend income
- others
24.2.2Income from term deposits
Held to maturity
Total investment income
-
15,427
15,427
42,037
57,464
363,005
-
-
-
18,236
18,236
1,084,282
-
29,170
29,170
73,416
102,586
1,765,985
-
-
-
30,059
30,059
2,554,059
Net realized gains / (losses) on investments
Available for sale
- Equity securities
- Government securities
Realized gains/(losses) on:
- Equity securities
- Fixed income securities
- Government securities
Provision of impairment in
'available-for-sale' investments
24.1.4
Realized gains on
Held for trading
2,108
2,669
4,777
(56,684)
-
(25,021)
(81,705)
810,926
(505,385)
305,541
348,290
(19)
348,271
220,588
2,047
(2,306)
220,329
1,174,744
(108,698)
1,066,046
2,568
2,645
5,213
305,398
-
(25,985)
279,413
2,154,084
(490,685)
1,663,399
455,691
(19)
455,672
807,062
832
(2,817)
805,077
2,595,686
(71,686)
2,524,000
Earnings per share - basic and diluted
There is no dilutive effect on the basic earnings per share which is based on:
(Loss) profit aster tax for the period attributable to ordinary shareholders
Weighted average number of ordinary shares outstanding
(Loss) earnings per share - basic and diluted
25
1,093,718
350,000,000
3.13
528,369
350,000,000
1.51
348,978
350,000,000
1.00
(114,328)
350,000,000
(0.33)
Number of shares
Rupees
Restated Restated
Rupees
Restated Restated
69ADAMJEE INSURANCE
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
26 Transactions with related parties
The Group has related party relationships with its associates, employee retirement benefit plans, key management personnel and other parties. Transactions are entered into with such related parties for the issuance of policies to and disbursements of claims incurred by them and payments of rentals for the use of premises rented from them. There are no transactions with key management personnel other than those specified in their terms of employment.
Investment in related parties have been disclosed in note 10 & 12 to the consolidated condensed interim financial information. Other transactions with related parties are summarized as follows:
Holding Company
i) Transactions
Premiums underwritten 787,145 845,012
Premiums received 725,376 769,300
Claims paid 314,925 397,584
Commission Paid 52,015 26,907
Rent paid 4,930 2,413
Dividends received 391,050 191,309
Dividends paid 106,292 98,193
Income on bank deposits 20,803 13,332
Investments made 250,000 293,093
Fee / service charges paid 1,604 3,001
Charge in respect of gratuity expense 23,314 16,457
Contribution to Employees' Provident Fund 16,805 15,439
Compensation paid to Key
management personnel 656,890 557,260
ii) Period end balances
Balances receivable 332,393 349,502
Balances payable 396,421 761,866
Cash and bank balances including
Term Deposit Receipts 1,883,339 1,282,197
Payable to Staff Gratuity Fund 139,947 133,127
Payable to Employees' Provident Fund 2,639 2,449
30 June 2019
Rupees in thousand
30 June 2018
For six months period ended
(Unaudited) (Audited)
30 June 2019
Rupees in thousand
31 December 2018
(Unaudited) (Unaudited)
70 SIX MONTHS REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
Subsidiary Company
i) Transactions
Associated undertakingsPremium written 25,597 25,748Claims expense 21,044 29,910Commission and other incentives in respect of Bancassurance 708,838 452,397Profit on bank deposits 81,856 27,222Bank charges 815 884Investments purchased 499,531 921,171Investments sold 169,933 666,291Dividend income 54,669 15,148Reinsurance claim recoveries 7,594 1,996Reinsurance premium ceded 1,889 -
Other related partiesPremium written 30,952 7,583Claims expense 8,559 11,012Commission and other incentives in respect of Bancassurance 42,203 -Profit on bank deposits 37,228 -Investment advisor fee 9,665 8,807Trustee fee 4,920 5,234Investments purchased 2,977,450 755,130Investments sold 2,448,655 408,269Dividend income 71,440 2,220
Transactions with key management personnelSale Proceeds from sale of fixed assets 1,021 4,476Loss on sale of fixed assets 46 2,532Premium written 50 50
Salary and other short term benefits- key management personnelExecutives * 144,394 106,617
30 June 2019
Rupees in thousand
30 June 2018
For six months period ended
ii) Period end balances
Associated undertakingsPremium due but unpaid 1,521 1,911Premium received in advance 12,938 1,638Bank deposits 924,269 1,801,576Investments held 1,298,092 1,234,532Dividend receivables 54,669 -Accrued Income - 61,049Commission payable ` 166,801̀ 282,856Claims payable 4,717 7,157Reinsurance expense payable 1,212 6,916
Other related partiesPremium due but unpaid 3,194 2,779Premium received in advance 2,279 11,340Bank deposits 9,115 -Investments held 4,269,216 3,653,798Accrued income 618 1,854Commission payable 6,094 11,354Claims payable - 41
(Unaudited) (Audited)
30 June 2019
Rupees in thousand
31 December 2018
Remuneration payable for the management of discretionaryinvestment portfolio 1,766 1,719
Remuneration payable to Trustee 475 512Other (payables)/ receivables (15) 2,500
Staff Retirement Benefit Plan (Gratuity Fund)Charge for the period (10,885) 8,327(Payable to)/ receivable from gratuity fund (3,536) 39,833
* The chief executive does not draw any remuneration
(Unaudited) (Unaudited)
71ADAMJEE INSURANCE
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)For six months period ended 30 June 2019
27
S
egm
ent
Info
rma
tio
n
F
or g
ener
al in
sura
nce,
eac
h cl
ass
of b
usin
ess
has
been
iden
tifie
d as
rep
orta
ble
segm
ent
whe
reas
, for
life
insu
ranc
e th
e st
atut
ory
fund
s ar
e tr
eate
d as
rep
orta
ble
segm
ents
. The
G
roup
con
duct
s ge
nera
l ins
uran
ce b
usin
ess
both
insi
de a
nd o
utsi
de P
akis
tan
whi
le li
fe a
ssur
ance
is c
ondu
cted
onl
y in
Pak
ista
n.
Pre
miu
m r
ecei
vab
le (
Incl
usi
ve o
f fe
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,
Fed
eral
insu
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Fed
eral
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e
Gro
ss w
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ium
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clu
sive
of
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ium
Fac
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war
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ium
Ad
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e su
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Insu
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ium
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ned
Insu
ranc
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ium
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ed t
o r
eins
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Net
insu
ranc
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rem
ium
Co
mm
issi
on
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me
Net
und
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ng i
nco
me
Insu
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Insu
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rec
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Net
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Co
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on
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Man
agem
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exp
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Net
insu
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e cl
aim
s an
d e
xpen
ses
Net
cha
nge
in in
sura
nce
liabi
litie
s (o
ther
than
out
stan
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clai
ms)
Und
erw
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ng r
esu
lt
Net
inve
stm
ent
inco
me
Net
fai
r va
lue
loss
on
finan
cial
ass
ets
at f
air
valu
e
thr
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rofit
or
loss
Net
unr
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gai
ns o
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vest
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Ren
tal
inco
me
Oth
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com
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Oth
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Fin
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Cos
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Pro
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rom
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Op
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ions
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Seg
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t A
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sU
nall
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ed A
sset
s
Seg
men
t L
iab
ilit
ies
4,7
73
,03
9
(59
0,1
41
)
(41
,03
0)
4,1
41
,86
8
4,1
41
,86
8
4,1
30
,33
4
2,7
30
8,8
04
4,1
41
,86
8
3,4
73
,20
7
(3,0
27
,65
6)
44
5,5
51
17
6,7
78
62
2,3
29
(57
1,5
49
)
52
1,3
72
(50
,17
7)
(21
3,1
80
)
(19
0,4
59
)
(45
3,8
16
)
-
16
8,5
13
8,1
00
,30
0
7,7
12
,77
8
28
,33
8
(1,8
50
)
(73
)
26
,41
5
26
,41
5
26
,28
2
- 13
3
26
,41
5
22
,84
8
(15
,73
5)
7,1
13
2,8
97
10
,01
0
(14
,06
6)
18
,46
3
4,3
97
(2,9
69
)
(82
6)
60
2
-
10
,61
2
10
7,3
36
11
8,7
03
48
5,9
39
(53
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5)
(4,2
98
)
42
8,3
26
42
8,3
26
41
7,3
87
32
8
10
,61
1
42
8,3
26
40
8,9
97
(52
,48
7)
35
6,5
10
38
3
35
6,8
93
(25
6,6
27
)
53
,42
3
(20
3,2
04
)
(55
,19
4)
(12
9,3
77
)
(38
7,7
75
)
-
(30
,88
2)
53
6,4
97
69
2,0
17
13
,10
3
(26
0)
(27
)
12
,81
6
12
,81
6
12
,77
5
- 41
12
,81
6
18
,44
3
-
18
,44
3
-
18
,44
3
(7,0
17
)
-
(7,0
17
)
(3,2
87
)
(6,0
71
)
(16
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5)
-
2,0
68
8,7
91
26
,96
1
1,7
26
,03
7
(20
6,0
60
)
(15
,21
0)
1,5
04
,76
7
1,5
04
,76
7
1,4
55
,92
1
-
48
,84
6
1,5
04
,76
7
1,4
33
,73
9
(25
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7)
1,4
07
,82
2
1,7
44
1,4
09
,56
6
(73
5,5
08
)
(7,0
07
)
(74
2,5
15
)
(96
,88
8)
(52
1,0
57
)
(1,3
60
,46
0)
-
49
,10
6
1,2
95
,34
8
2,7
75
,80
3
4,1
30
,51
4
(19
8,7
23
)
-
3,9
31
,79
1
3,9
31
,79
1
3,9
26
,28
3
-
5,5
08
3,9
31
,79
1
4,1
74
,08
1
(49
,84
8)
4,1
24
,23
3
(96
4)
4,1
23
,26
9
(3,9
11
,64
9)
1,0
88
,72
3
(2,8
22
,92
6)
(56
3,4
36
)
(65
3,7
78
)
(4,0
40
,14
0)
-
83
,12
9
5,9
58
,46
1
11
,06
5,0
01
1,1
23
,02
1
(21
,33
8)
(10
,97
6)
1,0
90
,70
7
1,0
90
,70
7
1,0
91
,40
5
-
(69
8)
1,0
90
,70
7
87
3,9
20
-
87
3,9
20
-
87
3,9
20
(74
0,0
59
)
-
(74
0,0
59
)
(28
,98
2)
(69
,00
1)
(83
8,0
42
)
-
35
,87
8
81
1,9
57
1,6
38
,40
7
19
,79
8
(94
3)
-
18
,85
5
18
,85
5
18
,85
5
- -
18
,85
5
25
,55
1
(18
,10
2)
7,4
49
-
7,4
49
(20
,38
8)
16
,68
7
(3,7
01
)
(34
)
(7,8
04
)
(11
,53
9)
-
(4,0
90
)
52
,99
1
53
,38
9
1,0
57
,55
8
(84
,40
4)
(9,5
93
)
96
3,5
61
96
3,5
61
95
7,6
37
-
5,9
24
96
3,5
61
89
7,1
24
(43
9,8
58
)
45
7,2
66
65
,29
0
52
2,5
56
(35
5,0
93
)
18
6,3
08
(16
8,7
85
)
(64
,79
2)
(13
3,1
42
)
(36
6,7
19
)
-
15
5,8
37
2,1
19
,30
5
2,5
08
,80
0
11
,28
3
(56
5)
(5)
10
,71
3
10
,71
3
10
,67
1
- 42
10
,71
3
8,0
47
(4,2
22
)
3,8
25
1,0
48
4,8
73
(2,8
81
)
1,9
83
(89
8)
(24
5)
(44
4)
(1,5
87
)
-
3,2
86
18
,33
2
20
,81
7
Una
lloc
ated
Lia
bil
itie
s
9,1
65
,59
4
(95
5,2
58
)
(81
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7)
8,1
29
,22
9
8,1
29
,22
9
8,0
52
,68
4
3,0
58
73
,48
7
8,1
29
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9
7,0
86
,98
7
(3,5
45
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8)
3,5
41
,06
9
24
4,1
95
3,7
85
,26
4
(2,6
58
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6)
75
4,0
96
(1,9
04
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0)
(45
9,0
36
)
(1,0
43
,03
6)
(3,4
06
,81
2)
-
37
8,4
52
27
8,9
36
- -
1,6
89
25
,09
2
(47
,33
8)
(2,3
27
)
57
,85
9
69
2,3
63
12
,86
3,4
07
22
,88
8,6
27
35
,75
2,0
34
15
,32
7,8
05
3,6
25
,45
6
18
,95
3,2
61
4,2
03
,03
6
(20
2,3
41
)
(10
5)
4,0
00
,59
0
4,0
00
,59
0
3,9
94
,86
6
-
5,7
24
4,0
00
,59
0
4,2
48
,97
0
(87
,90
7)
4,1
61
,06
3
2,9
81
4,1
64
,04
4
(3,9
56
,00
1)
1,1
25
,85
6
(2,8
30
,14
5)
(56
9,9
71
)
(66
8,9
23
)
(4,0
69
,03
9)
-
95
,00
5
10
2,5
86
- - -
5,3
52
(5,5
09
)
(2,3
31
)
-
19
5,1
03
6,1
45
,91
17
,30
6,3
68
13
,45
2,2
79
11
,28
4,8
71
80
4,5
05
12
,08
9,3
76
13
,36
8,6
30
(1,1
57
,59
9)
(81
,21
2)
12
,12
9,8
19
12
,12
9,8
19
12
,04
7,5
50
3,0
58
79
,21
1
12
,12
9,8
19
11
,33
5,9
57
(3,6
33
,82
5)
7,7
02
,13
2
24
7,1
76
7,9
49
,30
8
(6,6
14
,83
7)
1,8
79
,95
2
(4,7
34
,88
5)
(1,0
29
,00
7)
(1,7
11
,95
9)
(7,4
75
,85
1)
-
47
3,4
57
38
1,5
22
- -
1,6
89
30
,44
4
(52
,84
7)
(4,6
58
)
57
,85
9
88
7,4
66
19
,00
9,3
18
30
,19
4,9
95
49
,20
4,3
13
26
,61
2,6
76
4,4
29
,96
1
31
,04
2,6
37
5,3
71
,23
7
- -
5,3
71
,23
7
5,3
71
,23
7
5,3
71
,23
7
- -
5,3
71
,23
7
5,3
71
,23
7
(24
0,3
99
)
5,1
30
,83
8
-
5,1
30
,83
8
(3,1
26
,00
5)
17
0,5
58
(2,9
55
,44
7)
(1,1
73
,81
5)
(49
6,5
35
)
(4,6
25
,79
7)
(26
7,4
89
)
23
7,5
52
1,3
84
,46
3
(1,6
31
,53
0)
21
,00
0
1,5
00
14
3,5
97
(20
,64
8)
(8,2
29
)
-
12
7,7
05
33
,61
2,2
50
-
33
,61
2,2
50
32
,37
6,9
32
-
32
,37
6,9
32
18
,73
9,8
67
(1,1
57
,59
9)
(81
,21
2)
17
,50
1,0
56
17
,50
1,0
56
17
,41
8,7
87
3,0
58
79
,21
1
17
,50
1,0
56
16
,70
7,1
94
(3,8
74
,22
4)
12
,83
2,9
70
24
7,1
76
13
,08
0,1
46
(9,7
40
,84
2)
2,0
50
,51
0
(7,6
90
,33
2)
(2,2
02
,82
2)
(2,2
08
,49
4)
(12
,10
1,6
48
)
(26
7,4
89
)
71
1,0
09
1,7
65
,98
5
(1,6
31
,53
0)
21
,00
0
3,1
89
17
4,0
41
(73
,49
5)
(12
,88
7)
57
,85
9
1,0
15
,17
1
52
,62
1,5
68
30
,19
4,9
95
82
,81
6,5
63
58
,98
9,6
08
4,4
29
,96
1
63
,41
9,5
69
Insi
de
Pa
kis
tan
O
uts
ide
Pa
kis
tan
In
sid
e P
akis
tan
O
uts
ide
Pa
kis
tan
In
side
Pa
kis
tan
O
uts
ide
Pa
kis
tan
In
sid
e P
akis
tan
O
uts
ide
Pa
kis
tan
In
side
Pa
kis
tan
O
uts
ide
Pa
kis
tan
In
side
Pa
kis
tan
O
uts
ide
Pa
kis
tan
Ag
gre
ga
te
Ge
ne
ral
Insu
ran
ce
Ru
pe
es
in t
ho
usa
nd
s
Fo
r si
x m
on
th p
eri
od
en
de
d 3
0 J
un
e 2
01
9
Ge
ne
ral
Insu
ran
ce
Fir
e a
nd
pro
pe
rty d
am
ag
eM
ari
ne
, a
via
tio
n a
nd
tra
nsp
ort
Mo
tor
He
alt
hM
isce
lla
ne
ou
sTota
lL
ife
Insu
ran
ceA
gg
reg
ate
Insi
de
Pa
kis
tan
O
uts
ide
Pa
kis
tan
In
sid
e P
akis
tan
O
uts
ide
Pa
kis
tan
In
side
Pa
kis
tan
O
uts
ide
Pa
kis
tan
In
sid
e P
akis
tan
O
uts
ide
Pa
kis
tan
In
side
Pa
kis
tan
O
uts
ide
Pa
kis
tan
In
side
Pa
kis
tan
O
uts
ide
Pa
kis
tan
Ag
gre
ga
te
Ge
ne
ral
Insu
ran
ce
Ru
pe
es
in t
ho
usa
nd
s
30
Ju
ne
20
19
Ge
ne
ral
Insu
ran
ce
Fir
e a
nd
pro
pe
rty d
am
ag
eM
ari
ne
, a
via
tio
n a
nd
tra
nsp
ort
Mo
tor
He
alt
hM
isce
lla
ne
ou
sTota
lL
ife
Insu
ran
ceA
gg
reg
ate
72 SIX MONTHS REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)
27.1
Seg
men
t In
form
atio
n
For six months period ended 30 June 2019
Insi
de
Pa
kis
tan
O
uts
ide
Pa
kis
tan
In
sid
e P
akis
tan
O
uts
ide
Pa
kis
tan
In
side
Pa
kis
tan
O
uts
ide
Pa
kis
tan
In
sid
e P
akis
tan
O
uts
ide
Pa
kis
tan
In
side
Pa
kis
tan
O
uts
ide
Pa
kis
tan
In
side
Pa
kis
tan
O
uts
ide
Pa
kis
tan
Ag
gre
ga
te
Ge
ne
ral
Insu
ran
ce
Ru
pe
es
in t
ho
usa
nd
s
Ge
ne
ral
Insu
ran
ce
Fir
e a
nd
pro
pe
rty d
am
ag
eM
ari
ne
, a
via
tio
n a
nd
tra
nsp
ort
Mo
tor
He
alt
hM
isce
lla
ne
ou
sTota
lL
ife
Insu
ran
ceA
gg
reg
ate
Fo
r si
x m
onth
per
iod
ende
d 30
Jun
e 20
18 -
Res
tate
d
Insi
de
Pa
kis
tan
O
uts
ide
Pa
kis
tan
In
sid
e P
akis
tan
O
uts
ide
Pa
kis
tan
In
side
Pa
kis
tan
O
uts
ide
Pa
kis
tan
In
sid
e P
akis
tan
O
uts
ide
Pa
kis
tan
In
side
Pa
kis
tan
O
uts
ide
Pa
kis
tan
In
side
Pa
kis
tan
O
uts
ide
Pa
kis
tan
Ag
gre
ga
te
Ge
ne
ral
Insu
ran
ce
Ru
pe
es
in t
ho
usa
nd
s
Ge
ne
ral
Insu
ran
ce
Fir
e a
nd
pro
pe
rty d
am
ag
eM
ari
ne
, a
via
tio
n a
nd
tra
nsp
ort
Mo
tor
He
alt
hM
isce
lla
ne
ou
sTota
lL
ife
Insu
ran
ceA
gg
reg
ate
31
Dec
emb
er 2
01
8
Pre
miu
m r
ecei
vab
le (
Incl
usiv
e of
fed
era
l ex
cise
dut
y,
Fed
era
l in
sura
nce
fee
and
Adm
inis
tra
tive
sur
cha
rge)
Les
s:F
eder
al
exci
se d
uty
/ V
AT
Fed
era
l in
sura
nce
fee
Gro
ss w
ritt
en p
rem
ium
(in
clus
ive
of
adm
inis
tra
tive
sur
cha
rge)
Gro
ss d
irec
t pr
emiu
m
Fa
cult
ati
ve in
wa
rd p
rem
ium
Adm
inis
trat
ive
surc
harg
e
Insu
ranc
e pr
emiu
m e
arn
ed
Insu
ranc
e pr
emiu
m c
eded
to
rein
sure
rs
Net
insu
ranc
e pr
emiu
m
Com
mis
sion
inco
me
Net
und
erw
riti
ng in
com
e
Insu
ranc
e cl
aim
s
Insu
ranc
e cl
aim
rec
over
ies
from
rei
nsur
er
Net
cla
ims
Com
mis
sion
exp
ense
Ma
nage
men
t ex
pens
e
Net
insu
ranc
e cl
aim
s a
nd e
xpen
ses
Net
cha
nge
in in
sura
nce
liabi
litie
s (o
ther
tha
n ou
tsta
ndin
g cl
aim
s)
Und
erw
riti
ng r
esul
t
Net
inve
stm
ent
inco
me
Net
fa
ir v
alu
e lo
ss o
n fin
anc
ial
ass
ets
at
fair
va
lue
thr
ough
pro
fit o
r lo
ss
Net
unr
ealiz
ed g
ain
s on
inve
stm
ent
prop
erty
Ren
tal
inco
me
Oth
er in
com
e
Oth
er e
xpen
ses
Fin
anc
e C
ost
Pro
fit f
rom
Win
dow
Ta
kafu
l O
pera
tion
s
Pro
fit/
(los
s) b
efor
e ta
x
Seg
men
t A
sset
sU
nall
oca
ted
Ass
ets
Seg
men
t L
iab
iliti
es
3,49
9,30
4
(451
,277
)
(30,
233)
3,01
7,79
4
3,01
7,79
4
3,01
0,07
8
(322
)
8,03
8
3,01
7,79
4
2,40
1,61
0
(1,9
64,5
66)
437,
044
176,
229
613,
273
(902
,801
)
793,
543
(109
,258
)
(212
,692
)
(186
,391
)
(508
,341
)
-
104,
932
7,34
4,82
6
7,28
7,01
1
18,4
54
(937
)
(20)
17,4
97
17,4
97
17,4
48 - 49
17,4
97
20,0
97
(12,
694)
7,40
3
3,67
3
11,0
76 340
(2,2
29)
(1,8
89)
(2,5
30)
(415
)
(4,8
34)
-
6,24
2
70,5
85
89,8
28
533,
639
(60,
734)
(4,7
11)
468,
194
468,
194
457,
434 65
10,6
95
468,
194
432,
922
(57,
334)
375,
588
363
375,
951
(97,
703)
(25,
081)
(122
,784
)
(60,
406)
(124
,822
)
(308
,012
)
-
67,9
39
652,
691
695,
068
15,1
90
(417
)
(12)
14,7
61
14,7
61
14,6
99 - 62
14,7
61
15,0
38 -
15,0
38 -
15,0
38
(592
)
- (592
)
(2,4
66)
(3,0
12)
(6,0
70)
-
8,96
8
12,6
32
21,9
40
1,68
9,14
7
(201
,631
)
(14,
731)
1,47
2,78
5
1,47
2,78
5
1,42
5,36
0
-
47,4
25
1,47
2,78
5
1,34
2,89
9
(20,
156)
1,32
2,74
3 8
1,32
2,75
1
(666
,612
)
52,8
70
(613
,742
)
(103
,070
)
(480
,097
)
(1,1
96,9
09)
-
125,
842
1,21
0,74
6
2,59
2,72
2
3,04
8,40
5
(145
,577
)
-
2,90
2,82
8
2,90
2,82
8
2,90
1,54
4
-
1,28
4
2,90
2,82
8
3,21
8,21
0
(371
,591
)
2,84
6,61
9
8,44
6
2,85
5,06
5
(3,2
47,1
00)
1,18
1,61
9
(2,0
65,4
81)
(364
,700
)
(367
,089
)
(2,7
97,2
70)
-
57,7
95
5,23
6,10
5
9,51
4,02
1
1,01
6,03
8
-
(10,
060)
1,00
5,97
8
1,00
5,97
8
1,00
5,60
2
- 376
1,00
5,97
8
928,
738
-
928,
738
-
928,
738
(802
,647
)
-
(802
,647
)
(28,
228)
(70,
037)
(900
,912
)
-
27,8
26
596,
098
1,34
1,30
1
9,47
2
(451
)
-
9,02
1
9,02
1
9,02
1
- -
9,02
1
5,59
1
(5,4
28)
163
- 163
(5,0
93)
4,92
3
(170
)
(749
)
(2,7
83)
(3,7
02)
-
(3,5
39)
43,8
84
46,3
26
794,
597
(55,
751)
(7,1
38)
731,
708
731,
708
694,
361
30,9
99
6,34
8
731,
708
792,
943
(348
,275
)
444,
668
66,9
56
511,
624
(202
,059
)
87,0
75
(114
,984
)
(84,
028)
(124
,877
)
(323
,889
)
-
187,
735
1,90
6,66
4
2,30
1,54
0
8,0
22
(41
8)
(4)
7,6
00
7,6
00
7,5
78
- 22
7,6
00
5,8
36
(3,0
88
)
2,7
48
1,1
27
3,8
75
24
9
(18
6)
63
(57
4)
(2,3
29
)
(2,8
40
)
-
1,0
35
12
,40
3
12
,19
1U
nall
oca
ted
Lia
bili
ties
7,5
32
,72
5
(76
9,3
93
)
(66
,87
3)
6,6
96
,45
9
6,6
96
,45
9
6,5
92
,83
5
30
,74
2
72
,88
2
6,6
96
,45
9
5,8
99
,11
2
(2,3
90
,33
1)
3,5
08
,78
1
24
3,5
56
3,7
52
,33
7
(2,6
71
,82
2)
90
8,4
07
(1,7
63
,41
5)
(48
8,4
24
)
(98
6,2
24
)
(3,2
38
,06
3)
-
51
4,2
74
1,0
48
,46
1
- -
5,0
30
32
,83
8
(62
,45
6)
-
44
,28
1
1,5
82
,42
8
11
,71
1,0
25
24
,08
1,7
11
35
,79
2,7
36
14
,21
7,6
42
3,5
36
,88
4
17
,75
4,5
26
3,0
99
,54
3
(14
7,8
00
)
(36
)
2,9
51
,70
7
2,9
51
,70
7
2,9
50
,29
0
-
1,4
17
2,9
51
,70
7
3,2
64
,77
2
(39
2,8
01
)
2,8
71
,97
1
13
,24
6
2,8
85
,21
7
(3,2
52
,19
6)
1,1
84
,12
7
(2,0
68
,06
9)
(37
1,0
19
)
(37
5,6
28
)
(2,8
14
,71
6)
-
70
,50
1
30
,05
9
- - -
13
,67
8
(4,6
53
)
- -
10
9,5
85
5,3
75
,60
95
,95
6,2
43
11
,33
1,8
52
9,6
84
,30
6
73
2,1
01
10
,41
6,4
07
10
,63
2,2
68
(91
7,1
93
)
(66
,90
9)
9,6
48
,16
6
9,6
48
,16
6
9,5
43
,12
5
30
,74
2
74
,29
9
9,6
48
,16
6
9,1
63
,88
4
(2,7
83
,13
2)
6,3
80
,75
2
25
6,8
02
6,6
37
,55
4
(5,9
24
,01
8)
2,0
92
,53
4
(3,8
31
,48
4)
(85
9,4
43
)
(1,3
61
,85
2)
(6,0
52
,77
9)
-
58
4,7
75
1,0
78
,52
0
- -
5,0
30
46
,51
6
(67
,10
9)
-
44
,28
1
1,6
92
,01
3
17
,08
6,6
34
30
,03
7,9
54
47
,12
4,5
88
23
,90
1,9
48
4,2
68
,98
5
28
,17
0,9
33
5,9
83
,27
1
- -
5,9
83
,27
1
5,9
83
,27
1
5,9
83
,27
1
- -
5,9
83
,27
1
5,9
83
,27
1
(19
5,6
26
)
5,7
87
,64
5
-
5,7
87
,64
5
(3,0
89
,08
8)
21
4,8
48
(2,8
74
,24
0)
(92
1,7
89
)
(39
5,7
48
)
(4,1
91
,77
7)
(2,5
19
,28
9)
(92
3,4
21
)
1,4
75
,53
9
(56
6,8
07
)
47
,01
9
-
42
,62
8
(17
,16
6)
- -
57
,79
2
33
,89
5,7
86
-
33
,89
5,7
86
32
,75
8,0
90
-
32
,75
8,0
90
16
,61
5,5
39
(91
7,1
93
)
(66
,90
9)
15
,63
1,4
37
15
,63
1,4
37
16
,61
5,5
39
30
,74
2
74
,29
9
15
,63
1,4
37
15
,14
7,1
55
(2,9
78
,75
8)
12
,16
8,3
97
25
6,8
02
12
,42
5,1
99
(9,0
13
,10
6)
2,3
07
,38
2
(6,7
05
,72
4)
(1,7
81
,23
2)
(1,7
57
,60
0)
(10
,24
4,5
56
)
(2,5
19
,28
9)
(33
8,6
46
)
2,5
54
,05
9
(56
6,8
07
)
47
,01
9
5,0
30
89
,14
4
(84
,27
5)
-
44
,28
1
1,7
49
,80
5
50
,98
2,4
20
30
,03
7,9
54
81
,02
0,3
74
56
,66
0,0
38
4,2
68
,98
5
60
,92
9,0
23
73ADAMJEE INSURANCE
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)
28 Fair value measurement of financial instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is the presumption that the Group is a going concern and there is no intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.
IFRS 13 'Fair Value Measurement' requires the Group to classify fair value measurements and fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value hierarchy has the following levels:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
- Inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
- Inputs for the asset or liability that are not based on observable market data (that is, unadjusted) inputs (Level 3)
Transfer between levels of the fair value hierarchy are recognized at the end of the reporting period during which the changes have occurred.
For six months period ended 30 June 2019
Financial assets - measured at fair value
Investment
Equity securities- quoted 10
Equity securities- unquoted 10
Debt securities 11
17
Financial assets - not measured at fair value
Loans and other receivables * 13
Loan secured against life insurance policies*
Investment - Term deposits* 12
Insurance / reinsurance receivables
- unsecured and considered good * 14
Reinsurance recoveries against outstanding claims *
Salvage recoveries accrued *
Prepayments * 15
Cash and bank * 16
17
Financial liabilities - not measured at fair value
Underwriting provisions:
Outstanding claims (including IBNR)* 22
Insurance / reinsurance payables *
Other creditors and accruals* 19
17
14,153,753
3,172,505
-
31,048
-
-
-
-
-
-
-
-
17,357,306
-
-
-
-
-
-
-
4,352,703
-
-
-
13,878,048
-
-
-
-
-
18,230,751
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,669,875
3,771,020
2,597,118
206,407
17,244,420
26,854,561
3,172,505
4,352,703
31,048
682,387
39,943
13,878,048
8,243,527
5,897,373
329,781
3,815,261
8,622,181
368,790
76,288,108
10,669,875
3,771,020
2,597,118
206,407
17,244,420
26,854,561
-
-
-
-
-
-
-
-
-
-
-
-
26,854,561
-
-
-
-
-
-
-
4,352,703
-
-
-
-
-
-
-
-
-
-
4,352,703
-
-
-
-
-
-
3,172,505
-
-
-
-
-
-
-
-
-
-
-
3,172,505
-
-
-
-
-
26,854,561
3,172,505
4,352,703
-
-
-
-
-
-
-
-
-
-
34,379,769
-
-
-
-
-
* The Group has not disclosed the fair value of these items because their carrying amounts are a reasonable approximation of fair value.
Other Assets of Window Takaful Operations -
Operator's Fund*
Total liabilities of Window Takaful Operations-
Operator's Fund*
Investments of Window Takaful Operations -
Operator's Fund
12,700,808
-
-
-
-
-
-
-
-
-
-
-
12,700,808
-
-
-
-
-
-
-
-
-
682,387
39,943
-
8,243,527
5,897,373
329,781
3,815,261
-
222,330
19,230,602
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,622,181
146,460
8,768,641
-
-
-
-
-
Fair Value through P&L
Loans andreceivables
Cash andcash
equivalents
Otherfinancialliabilities
Level 1 Level 2 Level 3Total Total
Fair value
(Rupees in thousand
Availablefor sale
NoteHeld to
maturity
30 June 2019
Carrrying Amount
74 SIX MONTHS REPORT
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)
28.1 Fair value measurement of financial instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is the presumption that the Group is a going concern and there is no intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.
IFRS 13 'Fair Value Measurement' requires the Group to classify fair value measurements and fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value hierarchy has the following levels:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
- Inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
- Inputs for the asset or liability that are not based on observable market data (that is, unadjusted) inputs (Level 3)
Transfer between levels of the fair value hierarchy are recognized at the end of the reporting period during which the changes have occurred.
For six months period ended 30 June 2019
16,477,936
2,227,610
-
29,930
-
-
-
-
-
-
-
-
-
18,735,476
-
-
-
-
-
-
-
4,416,804
-
-
-
15,426,113
-
-
-
-
-
-
19,842,917
-
-
-
-
-
13,653,862
-
-
-
- -
-
-
-
-
-
-
-
-
13,653,862
-
-
-
-
-
-
-
-
-
552,070
34,556
-
7,162,077
6,046,905
350,340
3,116,455
-
250,569
17,512,972
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,523,097
101,695
5,624,792
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,461,975
2,709,714
2,687,715
229,819
16,089,223
30,131,798
2,227,610
4,416,804
29,930
552,070
34,556
15,426,113
7,162,077
6,046,905
350,340
3,116,455
5,523,097
352,264
- 75,370,019
10,461,975
2,709,714
2,687,715
229,819
- 16,089,223
30,131,798
-
-
-
-
-
-
-
-
-
-
-
-
30,131,798
-
-
-
-
-
-
-
4,416,804
-
-
-
-
-
-
-
-
-
-
4,416,804
-
-
-
-
-
-
2,227,610
-
-
-
-
-
-
-
-
-
-
-
2,227,610
-
-
-
-
-
30,131,798
2,227,610
4,416,804
-
-
-
-
-
-
-
-
-
-
36,776,212
-
-
-
-
- -
Fair Value through P&L
Loans andreceivables
Cash andcash
equivalents
Otherfinancialliabilities
Level 1 Level 2 Level 3Total Total
Fair value
(Rupees in thousand
Availablefor sale
NoteHeld to
maturity
31 December 2018
Carrrying Amount
Financial assets - measured at fair value
Investment
Equity securities- quoted 10
Equity securities- unquoted 10
Debt securities 11
17
Financial assets - not measured at fair value
Loans and other receivables * 13
Loan secured against life insurance policies*
Investment - Term deposits* 12
Insurance / reinsurance receivables
- unsecured and considered good * 14
Reinsurance recoveries against outstanding claims *
Salvage recoveries accrued *
Prepayments * 15
Cash and bank * 16
17
Financial liabilities - not measured at fair value
Underwriting provisions:
Outstanding claims (including IBNR)* 22
Insurance / reinsurance payables *
Other creditors and accruals* 19
17
* The Group has not disclosed the fair value of these items because their carrying amounts are a reasonable approximation of fair value.
Total liabilities of Window Takaful Operations-
Operator's Fund*
Investments of Window Takaful Operations -
Operator's Fund
Other Assets of Window Takaful Operations -
Operator's Fund*
75ADAMJEE INSURANCE
Notes to the Consolidated Condensed InterimFinancial Information (Unaudited)
29 Date of authorization for issue
This consolidated condensed interim financial information was authorized for issue on 23 August 2019 by the Board of Directors of the Holding Company.
30 Non - adjusting events after balance sheet date
The Board of Directors of the Holding Company in their meeting held on 23 August 2019 proposed an interim cash dividend for the six month period ended 30 June 2019 @ 10% i.e. Rupee 1/- per share (30 June 2018 @ 10 % i.e. Rupee 1/- per share). This consolidated condensed interim financial information for the six month period ended 30 June 2019 does not include the effect of this appropriation which will be accounted for in the consolidated financial statements for the year ending 31 December 2019.
31 General
31.1 Corresponding figures have been rearranged and reclassified for better presentation, wherever considered necessary.
31.2 Figures have been rounded off to the nearest thousand rupees unless other wise stated.
For six months period ended 30 June 2019
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
76 SIX MONTHS REPORT
77ADAMJEE INSURANCE
WINDOW TAKAFUL OPERATIONS
Condensed InterimFinancial Information
for the Six Months Period Ended30 June 2019(Unaudited)
78 SIX MONTHS REPORT
Window Takaful Operations
Introduction
We have reviewed the accompanying condensed interim statement of financial position of Adamjee Insurance Company Limited – Window Takaful Operations (the Operator) as at June 30, 2019, and the related condensed interim profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, and condensed interim cash flow statement and notes to the condensed interim financial information for the six months period then ended (here-in-after referred to as the “condensed interim financial information"). Management is responsible for the preparation and presentation of these condensed interim financial information in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial information based on our review. The figures of the condensed interim profit or loss and the condensed interim statement of comprehensive income for the three months period ended June 30, 2019 and related comparative information have not been reviewed, as we are required to review only the cumulative figures for the six months period ended June 30, 2019.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of condensed interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information as at June 30, 2019 and for the six months period then ended, are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.
Other Matter
The annual financial statements of the Operator for the year ended December 31, 2018 were audited by another firm of Chartered Accountants who vide their report dated April 3, 2019 expressed a modified opinion thereon.
The engagement partner on the review resulting in this independent auditor’s review report is Rana M. Usman Khan.
Chartered Accountants
Lahore
Date: 23 August 2019
INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF ADAMJEE INSURANCE COMPANY LIMITED WINDOW TAKAFUL OPERATIONS (“THE OPERATOR”) REPORT ON REVIEW OF CONDENSED INTERIM FINANCIAL INFORMATION
79ADAMJEE INSURANCE
As at 30 June 2019
Condensed Interim Statement of Financial position
ASSETS
Qard-e-Hasna to Participants' Takaful Fund
Property and equipment 7
Intangible assets 8
Investments
Equity securities 9
Debt securities 10
Loans and other receivables 11
Takaful / re-takaful receivables 12
Re-takaful recoveries against outstanding claims
Salvage recoveries accrued
Wakala and mudarib fee receivable
Deferred wakala fee
Deferred commission expense
Prepayments 13
Cash and bank 14
TOTAL ASSETS
FUNDS AND LIABILITIES
Operator's Fund
Statutory fund
Reserves
Unappropriated profit
Waqf / Participants' Takaful Fund
Ceded money
Accumulated surplus / (deficit)
Qard-e-Hasna from Operator's Fund
Liabilities
Underwriting provisions
Outstanding claims including IBNR
Unearned contribution reserve
Unearned re-takaful rebate
Contribution deficiency reserve
Retirement benefit obligations
Deferred taxation
Contribution received in advance
Takaful / re-takaful payables 15
Wakala and mudarib fee payable
Unearned wakala fee
Other creditors and accruals 16
Taxation - provision less payments
Total Liabilities
TOTAL FUND AND LIABILITIES
Contingencies and commitments 17
The annexed notes from 1 to 33 form an integral part of this condensed interim financial information.
146,460
14,565
20,483
31,048
-
3,702
-
-
-
-
-
40,809
889
141,882
253,378
399,838
50,000
-
143,431
193,431
-
-
-
-
-
-
-
-
1,883
493
-
-
-
151,095
37,213
15,723
206,407
399,838
-
-
-
-
50,000
21,200
326,569
53,527
21,809
-
151,095
-
97,972
378,313
1,100,485
1,100,485
-
-
-
-
500
42,746
43,246
` 146,460
217,448
552,757
14,200
28,396
-
-
10,196
65,737
-
-
22,045
-
910,779
1,100,485
146,460
14,565
20,483
31,048
50,000
24,902
326,569
53,527
21,809
-
151,095
40,809
98,861
520,195
1,353,863
1,500,323
50,000
-
143,431
193,431
500
42,746
43,246
146,460
217,448
552,757
14,200
28,396
1,883
493
10,196
65,737
-
151,095
59,258
15,723
1,117,186
1,500,323
146,460
16,185
20,633
29,930
-
13,008
230,423
46,654
15,881
23,342
134,721
39,148
83,260
534,528
1,187,713
1,334,173
50,000
18
102,357
152,375
500
(28,849)
(28,349)
146,460
220,606
500,111
12,735
24,103
1,883
530
10,158
24,303
23,342
134,721
111,195
-
1,063,687
1,334,173
(Audited)
Note 31 December 2018
AggregateOperator's Fund
Participants' Takaful Fund
Aggregate
Rupees in thousand
(Unaudited)
30 June 2019
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
80 SIX MONTHS REPORT
Window Takaful Operations
Condensed Interim Profit and Loss Account (Unaudited)For the Six Months Period Ended 30 June 2019
30 June 2019 30 June 2018 30 June 2019 30 June 2018
Three months period ended Six months period ended
Rupees in thousand
Note
Participant Takaful Fun d - Revenue Account
Net contribution revenue 18
Net takaful claims 19
Wakala fee 20
Direct expenses
Re-takaful rebate 21
Contribution deficiency
Takaful claims and acquisition expenses
Underwriting results
Other income 23
Investment income 24
Surplus for the period
Operator Takaful Fund - Revenue Account
Wakala fee 20
Commission expense 22
Management expenses 25
Other income 23
Investment income 24
Other expenses 26
Profit before tax
Income tax expense
Profit aster tax for the period
The annexed notes from 1 to 33 form an integral part of this condensed interim financial information.
245,390
(135,857)
(82,078)
(13,312)
10,141
(4,294)
(225,400)
19,990
8,655
1,279
29,924
82,078
(24,226)
(30,112)
27,740
3,116
1,345
(776)
31,425
(9,383)
22,042
155,608
(79,674)
(59,855)
(12,070)
9,259
-
(142,340)
13,268
3,012
-
16,280
59,855
(12,646)
(22,652)
24,557
881
-
(968)
24,470
(8,909)
15,561
469,332
(250,082)
(155,995)
(25,320)
20,441
(4,294)
(415,250)
54,082
15,038
2,475
71,595
155,995
(46,721)
(59,394)
49,880
8,363
1,345
(1,729)
57,859
(16,785)
41,074
289,039
(167,195)
(112,717)
(20,744)
16,860
-
(283,796)
5,243
5,421
-
10,664
112,717
(25,702)
(42,932)
44,083
1,770
166
(1,738)
44,281
(15,362)
28,919
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
81ADAMJEE INSURANCE
Condensed Interim Statement of Comprehensive Income (Unaudited)
Window Takaful Operations
Participant's Takaful Fund
Surplus for the period
Other comprehensive income
Total comprehensive income for the period
Operator’s Fund
Profit aster tax for the period
Other comprehensive income
Unrealized losses on available for sale investment- net of tax
Total comprehensive income for the period
The annexed notes from 1 to 33 form an integral part of this condensed interim financial information.
29,924
-
29,924
22,042
-
(441)
21,601
16,280
-
16,280
15,562
-
(1,201)
14,361
71,595
-
71,595
41,074
-
(18)
41,056
10,664
-
10,664
28,919
-
(442)
28,477
For the Six Months Period Ended 30 June 2019
30 June 2019 30 June 2018 30 June 2019 30 June 2018
Three months period ended Six months period ended
Rupees in thousand
Note
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
82 SIX MONTHS REPORT
Window Takaful Operations
Condensed Interim Cash Flow Statement (Unaudited)
Operating cash flows
(a) Takaful activities
Takaful contributions received
Wakala fee received / (paid)
Re-takaful / co-takaful contribution paid
Claims paid
Re-takaful and other recoveries received
Commissions paid
Commissions received
Other underwriting payments
Net cash generated from / (used in) from takaful activities
(b) Other operating activities
Income tax paid
General, administration and management expenses paid
Other (Payments) / Receipts
Net cash (used in) / generated from other operating activities
Total cash generated from / (used in) from operating activities
Investment activities
Profit received on investments
Qard-e-Hasna paid to Participants' Takaful Fund - net
Payment for investments
Proceeds from disposal of investments
Fixed capital expenditures
Total cash generated from / (used in) from investing activities
Financing activities
Qard-e-Hasna paid from Operator's Fund
Total cash generated from financing activities
Net Cash generated from / (used in) from all activities
Cash and cash equivalent at beginning of the period
Cash and cash equivalent at end of the period
Reconciliation to profit and loss account
Operating cash flows
Depreciation
(Decrease) / Increase in assets other than cash
Decrease / (Increase) in liabilities other than cash
Investment income
Return on bank deposits
Profit / surplus for the period
Attributed to:
Operator's Fund
Participants' Takaful Fund
The annexed notes from 1 to 33 form an integral part of this condensed interim financial information.
-
195,712
-
-
-
(53,216)
-
-
142,496
(1,092)
(108,967)
-
(110,059)
32,437
10,211
-
(1,144)
-
(1,661)
7,406
-
-
39,843
102,039
141,882
32,437
(3,431)
(21,044)
23,406
1,345
8,361
41,074
41,074
-
41,074
566,846
(195,712)
(72,581)
(314,066)
11,306
-
21,906
(28,065)
(10,366)
-
-
(9,693)
(9,693)
(20,059)
15,883
-
(50,000)
-
-
(34,117)
-
-
(54,176)
432,489
378,313
(20,059)
-
151,015
(76,874)
-
17,513
71,595
-
71,595
71,595
566,846
-
(72,581)
(314,066)
11,306
(53,216)
21,906
(28,065)
132,130
(1,092)
(108,967)
(9,693)
(119,752)
12,378
26,094
-
(51,144)
-
(1,661)
(26,711)
-
-
(14,333)
534,528
520,195
12,378
(3,431)
129,971
(53,468)
1,345
25,874
112,669
41,074
71,595
112,669
-
79,957
-
-
-
(27,032)
-
-
52,925
(192)
(43,748)
-
(43,940)
8,985
1,883
(5,000)
(30,381)
30,381
(1,101)
(4,218)
-
-
4,767
41,119
45,886
8,985
(995)
73,157
(54,164)
166
1,770
28,919
28,919
-
28,919
-
10,664
10,664
415,142
(79,957)
(71,982)
(193,164)
925
-
20,678
(21,398)
70,244
(494)
-
4,494
4,000
74,244
4,918
-
-
-
-
4,918
5,000
5,000
84,162
230,872
315,034
74,244
-
164,995
(233,996)
-
5,421
10,664
415,142
-
(71,982)
(193,164)
925
(27,032)
20,678
(21,398)
123,169
(686)
(43,748)
4,494
(39,940)
83,229
6,801
(5,000)
(30,381)
30,381
(1,101)
700
5,000
5,000
88,929
271,991
360,920
83,229
(995)
238,152
(288,160)
166
7,191
39,583
28,919
10,664
39,583
Rupees in thousand
Six Months period ended 30 June 2018
Operator's Fund
Participants' Takaful Fund
Aggregate
Six Months period ended 30 June 2019
Operator's Fund
Participants' Takaful Fund
Aggregate
For the Six Months Period Ended 30 June 2019
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
83ADAMJEE INSURANCE
Condensed Interim Statement of Changes in Funds (Unaudited)
Balance as at 31 December 2017 - (Audited)
Profit aster tax for the period 01 Jan 2018 to 30 June 2018
Other comprehensive loss for the
period 01 Jan 2018 to 30 June 2018
Total comprehensive income for the period
Balance as at 30 June 2018 - (Unaudited)
Profit aster tax for the period 01 July 2018 to 31 December 2018
Other comprehensive income for the
period 01 July 2018 to 31 December 2018
Total comprehensive income for the period
Balance as at 31 December 2018 - (Audited)
Profit aster tax for the period 01 Jan 2019 to 30 June 2019
Other comprehensive loss for the
period 01 Jan 2019 to 30 June 2019
Total comprehensive income for the period
Balance as at 30 June 2019 - (Unaudited)
Balance as at 31 December 2017 - (Audited)
Surplus for the period 01 Jan 2018 to 30 June 2018
Other comprehensive income for the period 01 Jan 2018 to 30 June 2018
Total comprehensive surplus for the period
Balance as at 30 June 2018 - (Unaudited)
(Deficit) for the period 01 July 2018 to 31 December 2018
Other comprehensive income for period the 01 July 2018 to 31 December 2018
Total comprehensive deficit for the period
Balance as at 31 December 2018 - (Audited)
Surplus for the period 01 Jan 2019 to 30 June 2019
Other comprehensive income for the period 01 Jan 2019 to 30 June 2019
Total comprehensive surplus for the period
Balance as at 30 June 2019 - (Unaudited)
The annexed notes from 1 to 33 form an integral part of this condensed interim financial information.
50,000
-
-
-
50,000
-
-
-
50,000
-
-
-
50,000
49,809
28,919
-
28,919
78,728
23,629
-
23,629
102,357
41,074
-
41,074
143,431
90
-
(442)
(442)
(352)
-
370
370
18
-
(18)
(18)
-
500
-
-
-
500
-
-
-
500
-
-
-
500
(36,179)
10,664
-
10,664
(25,515)
(3,334)
-
(3,334)
(28,849)
71,595
-
71,595
42,746
-
-
-
-
-
-
-
-
-
-
-
-
99,899
28,919
(442)
28,477
128,376
23,629
370
23,999
152,375
41,074
(18)
41,056
193,431
(35,679)
10,664
-
10,664
(25,015)
(3,334)
-
(3,334)
(28,349)
71,595
-
71,595
43,246
Ceded Money
Unappropriated
Profit Total
Operator's Fund
Rupees in thousand
Fair value
Reserve
Accumulated surplus / (deficit) Total
Participants' Takaful Fund
Rupees in thousand
Fair value
Reserve
For the Six Months Period Ended 30 June 2019
Statutory Fund
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
84 SIX MONTHS REPORT
Window Takaful Operations
Notes to the Condensed InterimFinancial Information (Unaudited)
1 Legal status and nature of business
Adamjee Insurance Company Limited ("the Operator") is a public limited company incorporated in Pakistan on 28 September 1960 under the Companies Act, 1913 (now the Companies Act, 2017). The Operator is listed on Pakistan Stock Exchange Limited and is engaged in general takaful business comprising fire and property, marine, motor, accident, health and miscellaneous. The registered office of the Operator is situated at Tanveer Building, 27-C-III, M.M. Alam Road, Gulberg III, Lahore.
The Operator was granted authorization on 23 December 2015 under Rule 6 of the Takaful Rules, 2012 to undertake Window Takaful Operations ("WTO") in respect of general takaful products by the Securities and Exchange Commission of Pakistan ("SECP").
For the purpose of carrying on the Takaful business, the Operator has formed a Waqf (Participants’ Takaful Fund (PTF)) on 01 January, 2016 under the Waqf deed with a ceded money of Rs.500,000. The Waqf deed govern the relationship of Operator and Participants for management of Takaful operations.
2 Basis of preparation and statement of compliance
This condensed interim financial information for the six months period ended 30 June 2019 has been prepared in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting and the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:
- International Accounting Standard - 34 - "Interim Financial Reporting" issued by the International Accounting Standards Board (IASB) as are notified under the Companies Act, 2017; and
- Provision of and directives issued under the Companies Act, 2017 ,the Insurance Ordinance, 2000, the Insurance Rules, 2017, Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012.
Where the provisions of and directives issued under the Companies Act, 2017 differ, the Insurance Ordinance, 2000, the Insurance Rules, 2017, the Insurance Accounting Regulations, 2017 and the Takaful Rules, 2012 shall prevail.
This condensed interim financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with annual financial statements of the Operator for the year ended 31 December 2018. Comparative condensed interim statement of financial position is stated from annual audited financial statements as of 31 December 2018, whereas comparatives for interim profit and loss account, interim statement of comprehensive income, interim statement of changes in funds and interim cash flow statement and related notes are extracted from condensed interim financial information of the Operator for the six months period ended 30 June 2018.
The condensed interim financial information reflect the financial position and result of operations of both Operator's Fund ('OPF') and PTF in a manner that the assets, liabilities, income and expenses of the OPF and PTF remain separately identifiable.
This condensed interim financial information is unaudited and being submitted to the shareholders as required under Section 237 of the Companies Act, 2017 and the listing regulations of Pakistan Stock Exchange Limited.
This condensed interim financial information is presented in Pakistan Rupees which is the Operator's functional currency and all financial information presented has been rounded off to the nearest thousand, except otherwise stated.
3 Basis of measurement
This condensed interim financial information has been prepared under historical cost convention except certain financial instruments carried at fair value, and defined benefit obligations under employees benefits carried at present value. All transactions reflected in this financial information are on accrual basis except for those reflected in cash flow statement.
4 Accounting policies
The accounting policies and the methods of computation adopted in the preparation of the condensed interim financial information are same as those applied in the preparation of annual audited financial statements for the year ended 31 December 2018.
The Operator has adopted all the applicable new standards and amendments to standards, including any consequential amendments to other standards, with a date of initial application of 01 January 2019, as mentioned in the financial statement for
For the Six Months Period Ended 30 June 2019
85ADAMJEE INSURANCE
Notes to the Condensed InterimFinancial Information (Unaudited)
the year ended 31 December 2018. Furthermore, the Company has adopted the temporary exemption which allows the Company to defer the application of both IFRS 9 and IFRS 17 until 31 December, 2021.
There is no significant impact of such changes on this condensed interim financial information of the Operator.
5 Use of estimates and judgments
The preparation of this condensed interim financial information in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Operator's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
During preparation of this condensed interim financial information, the significant judgments made by the management in applying the Operator's accounting policies and the key sources of estimation and uncertainty were the same as those that applied in the preceding audited annual published financial statements of the Operator for the year ended 31 December 2018.
6 Takaful and Financial risk management
The Operator's financial risk management objectives and policies are consistent with those disclosed in the annual financial statements for the year ended 31 December 2018.
7.1
8.1
8.2
This includes as advance of Rs. 1.30 million for the development of web portal for takaful operations.
12,506
3,291
(1,232)
14,565
534
2,445
260
52
3,291
18,433
2,050
20,483
20,633
-
(2,200)
18,433
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12,506
3,291
(1,232)
14,565
534
2,445
260
52
3,291
18,433
2,050
20,483
20,633
-
(2,200)
18,433
12,182
2,365
(2,041)
12,506
202
1,743
22
398
2,365
20,633
-
20,633
-
22,000
(1,367)
20,633
7 Property and equipment
Operating assets
Additions during the period / year
Depreciation charged during the period / year
7.1 Additions during the period / year
Furniture and fixture
Motor vehicles
Office equipment
Computer and related accessories
8 Intangible assets
Operating Assets-Intangible
Capital work in progress
8.1 Operating Assets-Intangible
Opening balance- net book value
Transfer from Capital work in progress
Amortization charged during the period / year
8.2
Note 31 December 2018
AggregateOperator's Fund
Participants' Takaful Fund
Aggregate
Rupees in thousand
30 June 2019
For the Six Months Period Ended 30 June 2019
(Unaudited) (Audited)
86 SIX MONTHS REPORT
Window Takaful Operations
Notes to the Condensed InterimFinancial Information (Unaudited)
9 Investments in equity securities
Available-for-sale-Mutual Fund
Meezan Islamic Income Fund 31,048 - 31,048 29,904 - 29,904
[604,139 units (2018: 563,675 units)]Unrealized gain on revaluation - 26
31,048 29,930
10 Investments in debt securities
Held-to-maturity
Sukuk certificates
[Engro Polymer and Chemicals Limited]
658
-
4,127
505
1,125
6,040
553
13,008
500
500
-
-
100,000
100,000
50,000
50,000
769
-
1,113
746
525
-
549
3,702
-
-
4,141
-
-
17,059
-
21,200
-
769
5,254
746
525
17,059
549
24,902
-
-
(Unaudited) (Audited)
Rupees in thousand
31 December 2018
CostImpairment/
provisionCarrying value
30 June 2019
CostImpairment/
provisionCarrying value
(Unaudited) (Audited)
30 June 2019 31 December 2018 30 June 2019 31 December 2018
Rupees in thousand
Value of CertificatesNo. of CertificatesFace Value
(Audited)
31 December 2018
AggregateOperator's Fund
Participants' Takaful Fund
Aggregate
Rupees in thousand
(Unaudited)
30 June 2019
11 Loans and other receivables - considered good
Sales tax recoverable
Advance taxes
Accrued income
Loan to employees
Security deposits
Bid money for tenders
Advances
12 Takaful/ Re-takaful receivables- unsecured and considered good
Contribution due from takaful contract holders 278,306 208,389
Less: provision for impairment of contribution due but unpaid - -
278,306 208,389
Amount due from other takaful/ re-takaful operators 48,263 22,034
Less: provision for impairment of due from other takaful/ re-takaful operators - -
48,263 22,034
326,569 230,423
30 June 2019Note
Rupees in thousand
(Unaudited) (Audited)
31 December 2018
For the Six Months Period Ended 30 June 2019
87ADAMJEE INSURANCE
Notes to the Condensed InterimFinancial Information (Unaudited)
13 Prepayments
Prepaid re-takaful contribution ceded 64,493
Prepaid monitoring charges (Tracking device) 18,767
Others -
-
-
889
889
74,250
23,722
-
97,972
74,250
23,722
889
98,861 83,260
14 Cash and bank
Cash and cash equivalents:
Cash in hand
Policy and revenue stamps
Cash at bank
Saving accounts 14.1
154
-
141,728
141,882
-
176
378,137
378,313
154
176
519,865
520,195
154
-
534,374
534,528
14.1 Saving accounts carry expected profit rates ranging from 5% to 9% (2018: 3.5% to 7%).
15 Takaful/re-takaful payables
Due to takaful contract holders 263
Due to other takaful / re-takaful operators 24,040
24,303
16 Other creditors and accruals
Agents commission payable 25,901
Federal excise duty 5,145
Federal insurance fee 2,845
Income tax deducted at source 12,006
Accrued expenses 5,341
Others 59,958
-
-
-
21,067
-
-
4,598
1,826
9,722
37,213
1,821
63,916
65,737
-
5,235
3,078
10,588
-
3,144
22,045
1,821
63,916
65,737
21,067
5,235
3,078
15,186
1,826
12,866
59,258 111,196
17 Contingencies and commitments
There has been no change in the contingencies and commitments since the date of last published annual financial statements.
Net contribution revenue
Gross contribution written
Unearned contribution revenue opening
Unearned contribution revenue closing
Contribution earned
Re-takaful contribution ceded
Prepaid re-takaful contribution ceded opening
Prepaid re-takaful contribution ceded closing
Re-takaful expense
307,197
548,119
(552,757)
302,559
(56,155)
(75,264)
74,250
(57,169)
245,390
283,869
371,949
(450,655)
205,163
(64,556)
(54,914)
69,915
(49,555)
155,608
636,726
500,111
(552,757)
584,080
(124,504)
(64,494)
74,250
(114,748)
469,332
546,281
284,406
(450,655)
380,032
(108,664)
(52,244)
69,915
(90,993)
289,039
31 December 2018
AggregateOperator's Fund
Participants' Takaful Fund
Aggregate
Rupees in thousand
30 June 2019Note
(Audited)(Unaudited)
18
30 June 2019 30 June 2018
Six months period ended30 June 2019 30 June 2018
Rupees in thousand
Three months period ended
For the Six Months Period Ended 30 June 2019
88 SIX MONTHS REPORT
Window Takaful Operations
Notes to the Condensed InterimFinancial Information (Unaudited)
30 June2018 Operator's
FundParticipants' Takaful Fund
Aggregate
Rupees in thousand
Six Months ended 30 June 2019
Aggregate
Outstanding claims including IBNR closing
Outstanding claims including IBNR opening
Re-takaful and other recoveries received
Re-takaful and other recoveries in respect of
Re-takaful and other recoveries revenue
Re-takaful and other recoveries in respect of
(151,095)
179,511
217,448
(229,570)
167,389
(32,592)
(75,336)
76,396
(31,532)
135,857
82,436
150,737
82,078
10,314
14,027
(14,200)
10,141
25,011
40,024
(40,809)
24,226
88,402
167,547
(156,637)
99,312
(23,243)
(54,002)
57,607
(19,638)
79,674
76,565
107,731
(124,441)
59,855
12,331
10,902
(13,974)
9,259
9,924
27,355
(24,633)
12,646
314,066
217,448
(220,606)
310,908
(48,024)
(75,336)
62,534
(60,826)
250,082
172,369
134,721
(151,095)
155,995
21,906
12,735
(14,200)
20,441
48,382
39,148
(40,809)
46,721
193,164
167,547
(153,116)
207,595
(27,409)
(54,002)
41,011
(40,400)
167,195
147,706
89,452
(124,441)
112,717
20,678
10,156
(13,974)
16,860
30,122
20,213
(24,633)
25,702
19 Net takaful claims
Claims Paid
Claim expense
outstanding claims closing
Net claim expense
20 Wakala fee
Gross Wakala fee
Deferred Wakala fee opening
Deferred Wakala fee closing
21 Re-takaful rebate
Re-takaful rebate received
Re-takaful rebate opening
Re-takaful rebate closing
Net re-takaful rebate
22 Commission expense
Commission paid or payable
Deferred commission opening
Deferred commission closing
outstanding claims opening
Profit on mutual funds-dividend income
8,358
5
8,363
-
-
1,345
1,345
15,038
-
15,038
-
2,475
-
2,475
23,396
5
23,401
-
2,475
1,345
3,820
7,191
-
7,191
166
-
-
166
23 Other income
Profit on bank deposits
Other income
24 Investment income
Profit on mutual funds
Profit on sukuks
For the Six Months Period Ended 30 June 2019
30 June 2019 30 June 2018
Six months period ended30 June 2019 30 June 2018
Rupees in thousand
Three months period ended
89ADAMJEE INSURANCE
Notes to the Condensed InterimFinancial Information (Unaudited)
Salaries, allowances and other benefits 17,493
1,790
162
323
15
-
698
700
8,931
30,112
770
-
6
776
15,886
501
51
33
7
500
1,044
960
3,670
22,652
770
138
60
968
35,564
3,431
345
690
24
123
1,270
1,468
16,479
59,394
1,540
183
6
1,729
29,551
995
195
65
10
640
1,399
1,860
8,217
42,932
1,540
138
60
1,738
30 June 2019 30 June 2018
Six months period ended30 June 2019 30 June 2018
Rupees in thousand
Three months period ended
25 Management expenses
Depreciation and amortization
Printing, stationery and postage
Communication
Bank charges
Legal and professional expense
Travelling and conveyance expenses
Rent and accommodation charges
Others
26 Other expenses
Shariah advisor's fee
Auditors' remuneration
Others
For the Six Months Period Ended 30 June 2019
90 SIX MONTHS REPORT
Window Takaful Operations
27 Segment Information
Each class of business has been identified as reportable segment. Class of business wise revenue and results have been disclosed in the profit and loss account prepared in accordance with the requirements of the Insurance Ordinance, 2000. The following is a schedule of class of business wise assets and liabilities.
Notes to the Condensed InterimFinancial Information (Unaudited)
Participants' Takaful Fund
Contribution receivable (inclusive of Federal
Excise Duty, Federal Insurance Fee and
Administrative Surcharge)
Less : Federal Excise Duty
Federal Insurance Fee
Gross Direct Written Contribution
(inclusive of Administrative Surcharge)
Facultative inward contribution
Gross Contribution Written
Contribution earned
Re-takaful expense
Net contribution revenue
Net rebate on re-takaful
Net underwriting income
Takaful claims
Re-takaful and other recoveries
Net claims
Wakala fee
Direct expense
Contribution deficiency reserve
Net takaful claims and expenses
Underwriting results
Other Income
Investment income
Surplus for the period
Segment assets
Unallocated assets
Total assets
Segment liabilities
Unallocated liabilities
Total liabilities
75,903
(10,380)
(649)
64,874
525
65,399
74,357
(61,214)
13,143
12,163
25,306
(19,039)
15,994
(3,045)
(20,820)
(308)
-
(24,173)
1,133
106,566
461,054
(63,050)
(3,941)
394,063
-
394,063
344,218
(8,677)
335,541
-
335,541
(173,594)
31,972
(141,622)
(92,395)
(24,537)
-
(258,554)
76,987
328,433
121,846
(16,663)
(1,041)
104,142
-
104,142
112,303
-
112,303
-
112,303
(103,359)
-
(103,359)
(28,074)
(276)
(4,294)
(136,003)
(23,700)
77,618
68,960
(9,430)
(589)
58,941
420
59,361
38,937
(33,781)
5,156
5,922
11,078
(9,217)
8,295
(922)
(9,713)
(159)
-
(10,794)
284
104,562
89,187
15,974
(2,184)
(137)
13,653
108
13,761
14,265
(11,076)
3,189
2,356
5,545
(5,699)
4,565
(1,134)
(4,993)
(40)
-
(6,167)
(622)
10,072
5,290 532,811 176,642 84,80289,187
15,974
(2,184)
(137)
13,653
108
13,761
14,265
(11,076)
3,189
2,356
5,545
(5,699)
4,565
(1,134)
(4,993)
(40)
-
(6,167)
(622)
10,072
5,290 532,811 176,642 84,802
743,737
(101,707)
(6,357)
635,673
1,053
636,726
584,080
(114,748)
469,332
20,441
489,773
(310,908)
60,826
(250,082)
(155,995)
(25,320)
(4,294)
(435,691)
54,082
15,038
2,475
71,595
627,251
473,234
1,100,485
888,732
168,507
1,057,239
Fire and Property Damage
Marine, Aviation and
TransportMotor
Accident & Health
Miscellaneous Total
Rupees in thousand
30 June 2019 (Unaudited)
Participants' Takaful Fund
For the Six Months Period Ended 30 June 2019
91ADAMJEE INSURANCE
Notes to the Condensed InterimFinancial Information (Unaudited)
Contribution receivable (inclusive of Federal
64,444
(8,813)
(551)
55,080
146
55,226
52,718
(42,624)
10,094
8,648
18,742
(3,268)
3,485
217
(16,104)
31
(15,856)
2,886
107,033
91,054
11,319
(1,548)
(97)
9,674
-
9,674
9,292
(7,027)
2,265
1,502
3,767
2,800
(2,188)
612
(3,252)
(5)
(2,645)
1,122
8,886
5,907
398,287
(54,467)
(3,404)
340,416
73
340,489
216,571
(6,363)
210,208
-
210,208
(121,757)
12,399
(109,358)
(66,011)
(20,490)
(195,859)
14,349
236,843
488,533
99,934
(13,666)
(854)
85,414
-
85,414
62,088
-
62,088
-
62,088
(56,086)
-
(56,086)
(16,438)
(18)
(72,542)
(10,454)
68,175
170,589
64,909
(8,876)
(555)
55,478
-
55,478
39,363
(34,979)
4,384
6,710
11,094
(29,284)
26,704
(2,580)
(10,912)
(262)
-
(13,754)
(2,660)
69,368
59,356
638,893
(87,370)
(5,461)
546,062
219
546,281
380,032
(90,993)
289,039
16,860
305,899
(207,595)
40,400
(167,195)
(112,717)
(20,744)
-
(300,656)
5,243
5,421
-
10,664
490,305
461,674
951,979
815,439
164,889
980,328
Fire and Property Damage
Marine, Aviation and
TransportMotor
Accident & Health
Miscellaneous Total
Rupees in thousand
30 June 2018 (Unaudited)
Fire and Property Damage
Marine, Aviation and
TransportMotor
Accident & Health
Miscellaneous Total
Rupees in thousand
31 December 2018 (Audited)
Participants' Takaful Fund
Excise Duty, Federal Insurance Fee and
Administrative Surcharge)
Less : Federal Excise Duty
Federal Insurance Fee
Gross Direct Written Contribution
(inclusive of Administrative Surcharge)
Facultative inward contribution
Gross Contribution Written
Contribution earned
Re-takaful expense
Net contribution revenue
Net rebate on re-takaful
Net underwriting income
Takaful claims
Re-takaful and other recoveries
Net claims
Wakala fee
Direct expense
Contribution deficiency reserve
Net takaful claims and expenses
Underwriting results
Other Income
Investment income
Surplus for the period
Segment assets
Unallocated assets
Total assets
Segment liabilities
Unallocated liabilities
Total liabilities
For the Six Months Period Ended 30 June 2019
92 SIX MONTHS REPORT
Window Takaful Operations
Notes to the Condensed InterimFinancial Information (Unaudited)
20,820
(10,037)
(12,759)
(1,976)
-
-
-
6,832
12,795
16,104
(7,279)
(12,159)
(3,334)
10,478
15,303 338 87,536 26,244 5,300
4,993
(2,295)
(2,918)
(220)
-
-
-
67
161
3,252
(1,425)
(2,380)
(553)
663
92,395
(25,018)
(31,804)
35,573
-
-
-
24,777
103,508
66,011
(10,455)
(17,464)
38,092
37,012
28,074
(5,963)
(7,580)
14,531
-
-
-
5,299
24,205
16,438
(3,876)
(6,474)
6,088
9,690
9,713
(3,408)
(4,333)
1,972
-
-
-
3,834
10,426
10,912
(2,667)
(4,455)
3,790
4,647
155,995
(46,721)
(59,394)
49,880
8,363
1,345
(1,729)
57,859
40,809
359,029
399,838
151,095
55,312
206,407
112,717
(25,702)
(42,932)
44,083
1,770
166
(1,738)
44,281
62,490
319,704
382,194
134,721
95,098
Fire and Property Damage
Marine, Aviation and
TransportMotor
Accident & Health
Miscellaneous Total
Rupees in thousand
30 June 2019 (Unaudited)
Operator's Fund
Fire and Property Damage
Marine, Aviation and
TransportMotor
Accident & Health
Miscellaneous Total
Rupees in thousand
30 June 2018 (Unaudited)
Fire and Property Damage
Marine, Aviation and
TransportMotor
Accident & Health
Miscellaneous Total
Rupees in thousand
31 December 2018 (Audited)
229,819
Operator's Fund
Wakala fee income
Less : Commission expense
Management expenses
Other Income
Investment income
Other expenses
Profit before tax
Segment assets
Unallocated assets
Total assets
Segment liabilities
Unallocated liabilities
Total liabilities
Operator's Fund
Wakala fee income
Less : Commission expense
Management expenses
Other Income
Investment income
Other expenses
Profit before tax
Segment assets
Unallocated assets
Total assets
Segment liabilities
Unallocated liabilities
Total liabilities
For the Six Months Period Ended 30 June 2019
93ADAMJEE INSURANCE
Notes to the Condensed InterimFinancial Information (Unaudited)
28 Fair values of financial instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is the presumption that the company is a going concern and there is no intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.
IFRS 13 'Fair Value Measurement' requires the company to classify fair value measurements and fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value hierarchy has the following levels:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
- Inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
- Inputs for the asset or liability that are not based on observable market data (that is, unadjusted) inputs (Level 3)
Transfer between levels of the fair value hierarchy are recognised at the end of the reporting period during which the changes have occurred.
10
11
12
14
19
16
50,000
-
-
-
-
-
50,000
-
-
-
-
-
-
24,902
326,569
53,527
21,810
-
426,808
-
-
-
-
-
-
-
-
-
-
520,195
520,195
-
-
-
-
-
-
-
-
-
-
-
-
217,448
65,737
-
3,144
286,329
50,000
24,902
326,569
53,527
21,810
520,195
997,003
217,448
65,737
-
3,144
286,329
-
-
-
- -
-
-
-
-
-
-
-
-
-
-
- -
-
-
-
-
-
-
-
-
-
-
- -
-
-
-
-
-
-
-
-
-
-
- -
-
-
-
-
-
-
-
-
Re-takaful recoveries against outstanding claims
Investments - Debt Securities
Loan and other receivables
Takaful / re-takaful receivables
Salvage recoveries accrued
Cash and bank
Outstanding claims including IBNR
Takaful / re-takaful payables
Wakala and mudarib fee payable
Other creditors and accruals
Note
Carrying amount Fair value
Availablefor sale
Loans andreceivables
Cash andcash
equivalents
Other
liabilitiesTotal Level 1 Level 2 Level 3 Total
Rupees in thousand
financial
30 June 2019 (Unaudited)
Participants' Takaful Fund
For the Six Months Period Ended 30 June 2019
Financial assets not measured at fair value
Financial assets not measured at fair value
94 SIX MONTHS REPORT
Window Takaful Operations
Notes to the Condensed InterimFinancial Information (Unaudited)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,551
230,423
46,654
15,881
-
301,509
-
-
-
-
-
-
-
-
-
-
432,489
-
432,489
-
-
-
-
-
-
-
-
-
-
-
-
-
220,606
24,303
23,342
937
269,188
-
8,551
230,423
46,654
15,881
432,489
733,998
220,606
24,303
23,342
937
269,188
-
-
-
- -
-
-
-
-
-
-
-
-
-
-
- -
-
-
-
-
-
-
-
-
-
-
- -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Note
Carrying amount Fair value
Availablefor sale
Loans andreceivables
Cash andcash
equivalents
Other
liabilitiesTotal Level 1 Level 2 Level 3 Total
Rupees in thousand
financial
31 December 2018 (Audited)
Participants' Takaful Fund
Investments - Debt Securities 10Loan and other receivables 11Takaful / re-takaful receivables 12Re-takaful recoveries against outstanding claims
Salvage recoveries accrued
Cash and bank 14
Outstanding claims including IBNR 19Takaful / re-takaful payables
Wakala and mudarib fee payable
Other creditors and accruals
Financial assets measured at fair value
16
31,048
-
-
-
31,048
-
-
-
2,384
-
-
2,384
-
-
-
-
-
141,882
141,882
-
-
-
-
-
-
-
32,615
32,615
31,048
2,384
-
141,882
175,314
32,615
32,615
31,048
-
-
-
31,048
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31,048
-
-
-
31,048
-
-
-
Note
Carrying amount Fair value
Availablefor sale
Loans andreceivables
Cash andcash
equivalents
Other
liabilitiesTotal Level 1 Level 2 Level 3 Total
Rupees in thousand
financial
30 June 2019 (Unaudited)
Operator's Takaful Fund
9
11
14
16
Investments - Equity Securities
Loan and other receivables
Wakala and mudarib fee receivable
Cash and bank
Other creditors and accruals
For the Six Months Period Ended 30 June 2019
Financial assets measured at fair value
Financial assets measured at fair value
Financial assets measured at fair value
Financial assets measured at fair value
95ADAMJEE INSURANCE
Notes to the Condensed InterimFinancial Information (Unaudited)
29,930
-
-
-
-
29,930
-
-
-
3,246
23,342
-
26,588
-
-
-
-
-
102,039
-
102,039
-
-
-
-
-
-
-
-
90,262
90,262
29,930
3,246
23,342
102,039
158,557
90,262
90,262
29,930
-
-
-
29,930
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29,930
-
-
-
-
29,930
-
-
-
9
11
14
16
Investments - Equity Securities
Loan and other receivables
Wakala and mudarib fee receivable
Cash and bank
Other creditors and accruals
Note
Carrying amount Fair value
Availablefor sale
Loans andreceivables
Cash andcash
equivalents
Other
liabilitiesTotal Level 1 Level 2 Level 3 Total
Rupees in thousand
financial
31 December 2018 (Audited)
Operator's Takaful Fund
29 Movement in Investment - Available for sale
Opening balance 29,930 30,343
Additions 1,144 119,195
Disposals (sales and redemptions) - (119,506)
Fair value on gains (excluding net realized gain) (26) (102)
Closing balance 31,048 29,930
Note
Rupees in thousand
(Unaudited) (Audited)
Six months period ended 30 June 2019
31 December 2018
For the Six Months Period Ended 30 June 2019
Financial assets measured at fair value
Financial assets measured at fair value
Financial assets measured at fair value
96 SIX MONTHS REPORT
Window Takaful Operations
Notes to the Condensed InterimFinancial Information (Unaudited)
31 Subsequent events - non adjusting event
There are no significant events that need to be disclosed for the six months period ended 30 June, 2019.
32 Date of authorization for issue
This condensed financial information was approved and authorized for issue on 23 August 2019 by the Board of Directors of the Operator.
33 General
33.1 Corresponding figures have been rearranged and reclassified for better presentation, where considered necessary.
33.2 Figures have been rounded off to the nearest thousand rupees unless other wise stated.
30 Transactions with related parties
The Operator has related party relationship with its associates, subsidiary company, employee retirement benefit plans, key management personnel and other parties. All transactions involving related parties arising in the normal course of business are conducted at commercial terms and conditions. Balances and transactions with related party are disclosed in relevant notes to this financial statements.
i) Transactions
Subsidiary Company
Contribution underwritten 1,113 135
Contribution received 943 135
Claims paid 181 -
Other related parties
Contribution underwritten 77,283 59,477
Contribution received 84,164 48,750
Claims paid 26,216 7,537
Income on bank deposits 1,504 959
ii) Period end balances
Subsidiary Company
Balances payable 25 19
Balances receivable 170 -
Contribution received in advance 178 -
Other related parties
Balances receivable 9,731 40,333
Balances payable 10,690 3,092
Cash and bank balances 16,561 61,850
Rupees in thousand
Six months period ended 30 June 2019
Six months period ended 30 June 2018
For the Six Months Period Ended 30 June 2019
Muhammad Ali Zeb
Managing Director & Chief Executive Officer
Umer Mansha
Chairman
Muhammad Asim Nagi
Chief Financial Officer
Muhammad Arif Hameed
Director
Shaikh Muhammad Jawed
Director
97ADAMJEE INSURANCE
Notes
98 SIX MONTHS REPORT
Window Takaful Operations
Notes
99ADAMJEE INSURANCE
Notes